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Doc#: 1331116056 Fee: $168.00 RHSP Fee:$9.00 RPRF Fee: $1.00 Karen A. Yarbrough Cook County Recorder of Deeds Date:11/07/201312:38PM Pg: 1 of66

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LAKE STREET STUDIOS REDEVELOPMENT AGREEMENT

BY AND BETWEEN

·THE CITY OF CHICAGO

AND

LAKE STREET STUDIOS LIMITED PARTNERSHIP

AND

THE INTERFAITH HOUSING DEVELOPMENT CORPORATION OF CHICAGO

This agreement was prepared by and after recording return to: Ann R. Kaplan-Perkins, Esq. City of Chicago Law Department 121 North LaSalle Street, Room 600 Chicago, IL 60602

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TABLE OF CONTENTS

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SECTION 1. RECITALS ................................................................................................................ 3

SECTION 2. DEFINITIONS ........................................................................................................... 3

SECTION 3. THE PROJECT ....................................................................................................... 10 3.01 The Project. .............................................................................................................. 10 3.02 Scope Drawings and Plans and Specifications ....................................................... 10 3.03 Project Budget ......................................................................................................... 10 3.04 Change Orders ........................................................................................................ 11 3.05 DHED Approval ........................................................................................................ 11 3.06 Other Approvals ....................................................................................................... 12 3.07 Progress Reports and Survey Updates ................................................................... 12. 3.08 Inspecting Agent or Architect... ................................................................................ 12 3.09 Barricades ................................................................................................................ 12 3.1 0 Signs and Public Relations ...................................................................................... 12 3.11 Utility Connections ................................................................................................... 12 3.12 Permit Fees .............................................................................................................. 12

SECTION 4. FINANCING ............................................................................................................. 13 4.01 Total Project Cost and Sources of Funds ................................................................ 13 4.02 Developer Funds .................................................................................................... 13 4.03 City Funds ................................................................................................................ 13 4.04 Requisition Form ...................................................................................................... 15 4.05 Treatment of Prior Expenditures and Subsequent Disbursements ......................... 16 4.06 Cost0verruns .......................................................................................................... 17 4.07 Preconditions of Disbursement... ............................................................................. 18 4.08 Conditional Grant ..................................................................................................... 19 4.09 ·Cost of Issuance ...................................................................................................... 19

SECTION 5. CONDITIONS PRECEDENT .................................................................................. 19 5.01 Project Budget ......................................................................................................... 19 5.02 Scope Drawings and Plans and Specifications ....................................................... 19 5.03 Other Governmental Approvals ..................................................................... .' ......... 19 5.04 Financing.' ................................................................................................................. 20 5.05 Acquisition and Title ................................................................................................. 20 5.06 Evidence of Clean Title ............................................................................................ 20 5.07 Surveys .................................................................................................................... 21 5.08 Insurance ................................................................................................................. 21 5.09 Opinion of the Developer's Counsel ....................................................... -................. 21 5.10 Evidence of Prior Expenditures ............................................................................... 21 5.11 Financial Statements ............................................................................................... 21 5.12 Documentation ......................................................................................................... 21 5.13 Environmental .......................................................................................................... 21 5.14 Corporate Documents; Economic Disclosure Statement.. ...................................... 21 5.15 Litigation ................................................................................................................... 22

SECTION 6. AGREEMENTS WITH CONTRACTORS ....................................... 22

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6.01 Bid Requirement for General Contractor and Subcontractors ................................ 22 6.02 Construction Contract .............................................................................................. 23 6.03 Performance and Payment Bonds ........................................................................... 23 6.04 Employment Opportunity ......................................................................................... 23 6.05 Other Provisions ...................................................................................................... 23

SECTION 7. COMPLETION OF CONSTRUCTION OR REHABILITATION ............................. 23 7.01 Certificate of Completion of Construction or Rehabilitation .................................... 23 7.02 Effect of Issuance of Certificate; Continuing Obligations ........................................ 24 7.03 Failure to Complete .................................................................................................. 24 7.04 Notice of Expiration of Term of Agreement ............................................................. 25

SECTION 8. COVENANTS/REPRESENTATIONS/WARRANTIES OF THE DEVELOPER. .... 25 8.01 General .................................................................................................................... 25 8.02 Covenant to Redevelop ........................................................................................... 27 8.03 Redevelopment Plan ............................................................................................... 27 8.04 Use of City Funds .................................................................................................... 27 8.05 Other Bonds ............................................................................................................. 27 8.06 Job Creation and Retention; Covenant to Remain in the Citv ................................. 28 8.07 Employment Opportunity[; Progress Reports] ......................................................... 28 8.08 Employment Profile .................................................................................................. 28 8.09 Prevailing Wage ....................................................................................................... 28 8.10 Arms-Length Transactions ...................................................................................... 29 8.11 Conflict of Interest .................................................................................................... 29 8.12 Disclosure of Interest ............................................................................................... 29 8.13 Financial Statements ............................................................................................... 29 8.14 Insurance ................................................................................................................. 29 8.15 . Non-Governmental Charges .................................................................................... 29 8.16 Developer's Liabilities .............................................................................................. 30 8.17 Compliance with Laws ............................................................................................. 30 8.18 Recording and Filing ................................................................................................ 30 8.19 Real Estate Provisions ............................................................................................. 31 8.20 Survival of Covenants .............................................................................................. 35 8.21 Annual Compliance Report ...................................................................................... 35

SECTION 9. COVENANTS/REPRESENTATIONS/WARRANTIES OF CITY ........................... 35 9.01 General Covenants ............................................. _ ..... ~ ............................................... 35 9.02 Survival of Covenants .............................................................................................. 35

SECTION 10. DEVELOPER'S EMPLOYMENT OBLIGATIONS ................................................ 35 10.01 Employment Opportunity .................................................. : .................................... 35 10.02 City Resident Construction Worker Employment Requirement ............................ 36

SECTION 11. ENVIRONMENTAL MATTERS ............................................................................ 40

SECTION 12. INSURANCE ......................................................................................................... 41

SECTION 13. INDEMNIFICATION .............................................................................................. 45 13.01 General Indemnity .................................................................................................. 45

SECTION 14. MAINTAINING RECORDS/RIGHT TO INSPECT ................................................ 46

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14.01 Books and Records ............................................................................................... 46 14.02 Inspection Rights ................................................................................................... 46

SECTION 15. DEFAULT AND REMEDIES ................................................................................. 46 15.01 Events of Default. ................................................................................................... 46 15.02 Remedies ............................................................................................................... 48 15.03 Curative Period ...................................................................................................... 48

SECTION 16. MORTGAGING OF THE PROJECT ..................................................................... 48

SECTION 17. NOTICE ................................................................................................................ 49

SECTION 18. MISCELLANEOUS ................................................ · ............................................... 50 18.01 Amendment. ........................................................................................................... 50 18.02 Entire Agreement ................................................................................................... 51 18.03 Limitation of Liability ............................................................................................... 51 18.04 Further Assurances ............................................................................................... 51 18.05 Waiver .............................................................. : ..................................................... 51 18.06 Remedies Cumulative ............................................................................................ 51 18.07 Disclaimer .............................................................................................................. 51 18.08 Headings ................................................................................................................ 51 18.09 Counterparts .......................................................................................................... 51 18.10 Severability ............................................................................................................. 51 18.11 Conflict ................................................................................................................... 52 18.12 Governing Law ....................................................................................................... 52 18.13 Form of Documents ............................................................................................... 52· 18.14 Approval ........ , ........................... · ............................................................................. 52 18.15 Assignment ............................................................................................................ 52 18.16 Binding Effect ......................................................................................................... 52 18.17 Force Majeure ........................................................................................................ 52 18.18 Exhibits ................................................................................................................... 53 18.19 Business Economic Support Act ........................................................................... 53 18.20 Venue and Consent to Jurisdiction ........................................................................ 53 18.21 Costs and Expenses .............................................................................................. 53 18.22 Business Relationships .......................................................................................... 53

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LIST OF EXHIBITS

Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Exhibit J Exhibit K Exhibit L

*Redevelopment Area *Property *TIF-Funded Improvements Redevelopment Plan Construction Contract Escrow Agreement

*Permitted Liens *Project Budget Approved Prior Expenditures Opinion of Developer's Counsel Requisition Form Form of Subordination Agreement

(An asterisk(*) indicates which exhibits are to be recorded.)

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[leave blank 3" x 5" space for recorder's office]

This agreement was prepared by and after recording return to: Ann R. Kaplan-Perkins, Esq. City of Chicago Law Department 121 North LaSalle Street, Room 600 Chicago, IL 60602

LAKE STREET STUDIOS REDEVELOPMENT AGREEMENT

This Lake Street Studios Redevelopment Agreement (this AAgreement") is made as of this ___ day of , 2013, by and between the City of Chicago, an Illinois municipal corporation (the ACity"), through its Department of Housing and Economic Development ("DHED"), Lake Street Studios Limited Partnership, an Illinois limited partnership (the "Owner"), and The Interfaith Housing Development Corporation of Chicago, an Illinois not-for-profit corporation ("I HOC" and sometimes collectively with the Owner, the "Developer").

RECITALS

A. Constitutional Authoritv: As a home rule unit of government under Section 6(a), Article VII of the 1970 Con~titution of the State of Illinois (the AState"), the City has the power to regulate for the protection of the public health, safety, morals and welfare of its inhabitants, and pursuant thereto, has the power to encourage private development in order to enhance the local tax base, create employment opportunities and to enter into contractual agreements with private parties in order to achieve these goals. ·

B. Statutory Authority: The City is authorized under the provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq., as amended from time to time (the AAct"), to finance projects that eradicate blighted conditions and conservation area factors through the use of tax increment allocation financing for redevelopment projects.

C. City Council Authority: To induce redevelopment pursuant to the Act, the City Council of the City (the "the City Council") adopted the following ordinances on March 23, 1989: (1) "An Ordinance of the City of Chicago, Illinois Approving a Redevelopment Plan for the Madison-Racine Redevelopment Project Area"; (2) "An Ordinance of the City of Chicago, Illinois Designating the

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Madison-Racine Redevelopment Project Area as a Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act"; and (3) "An Ordinance of the City of Chicago, Illinois Adopting Tax Increment Allocation Financing for the Madison-Racine Redevelopment Project Area" (the "TIF Adoption Ordinance"); and, thereafter, on June 10, 1996, the City Council adopted ordinances (the "Expansion Ordinances"), expanding the boundaries of the Madison-Racine Redevelopment Project Area and renaming such expanded area the Near West Redevelopment Project Area (the "Redevelopment Area"); and, thereafter, on June 6, 2001, the City Council adopted an ordinance (the "Extension Ordinance") to clarify the portability language in the redevelopment plan for the Redevelopment Area and extending the termination date of the Redevelopment Area to December 31, 2013; and thereafter, on July 28, 2011, the City Council adopted an ordinance (the "Third Amendment Ordinance") amending the redevelopment plan for the Redevelopment Area to increase the total estimated project costs; and thereafter, on June 5, 2013, the City Council adopted an ordinance (the "Fourth Amendment Ordinance") amending the land use map in the redevelopment plan for the Redevelopment Area (items(1 )-(3), the Expansion Ordinances, the Extension Ordinance, the Third Amendment Ordinance and the Fourth Amendment Ordinance shall be collectively referred to herein as the "TIF Ordinances"). The Redevelopment Area is legally described in Exhibit A hereto.

D. The Project: The Developer intends to purchase (the AAcquisition") certain property located within the Redevelopment Area at 727 West Lake Street, Chicago, Illinois 60661 and legally described on Exhibit B hereto (the AProperty"), and, within the time frames set forth in Section 3.01 hereof, the Developer shall commence and complete construction of a multi-story building with approximately 61 affordable studio rental units for homeless individuals, those at risk of homelessness, and other low-income residents (the AFacility") thereon. The Facility will include certain commercial space on the ground floor, which is anticipated to be used for tenant supportive services. The Facility and related improvements (including but not limited to those TIF-Funded Improvements as defined below and set forth on Exhibit C) are collectively referred to herein as the AProject." The completion of the Project would not reasonably be anticipated without the financing contemplated in this Agreement.

E. Redevelopment Plan: The Project will be carried out in accordance with this Agreement and the City of Chicago Near West Redevelopment Project Area Tax Increment Finance Program Redevelopment Plan and Project (the ARedevelopment Plan") attached hereto as Exhibit Q.

F. City Financing: The City agrees to use, in the. amounts set forth in Section 4.03 hereof, Incremental Taxes (as defined below), to pay for or reimburse IHDC for the costs of TIF­Funded Improvements pursuant to the terms and conditions of this Agreement.

In addition, the City may, in its discretion, issue tax increment allocation bonds (ATIF Bonds") secured by Incremental Taxes pursuant to a TIF bond ordinance (the AT IF Bond Ordinance") at a later date as described in Section 4.03(d) hereof, the proceeds of which (the ATIF Bond Proceeds") may be used to pay for the costs of the TIF-Funded Improvements not previously paid for from Incremental Taxes, in order to reimburse the City for the costs of TIF-Funded Improvements.

Now, therefore, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

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SECTION 1. RECITALS

The foregoing recitals are hereby incorporated into this agreement by reference.

SECTION 2. DEFINITIONS

For purposes of this Agreement, in addition to the terms defined in the foregoing recitals, the following terms shall have the meanings set forth below:

AAct" shall have the meaning set forth in the Recitals hereof.

AActual residents of the City" shall mean persons domiciled within the City.

AAcquisition" shall have the meaning set forth in the Recitals hereof.

AAffiliate" shall mean any person or entity directly or indirectly controlling, controlled by or under common control with the Developer.

"Annual Compliance Report" shall mean a signed report from the Developer to the City (a) itemizing each of the Developer's obligations under the RDA during the preceding calendar year, (b) certifying the Developer's compliance or noncompliance with such obligations, (c) attaching evidence (whether or not previously submitted to the City) of such compliance or noncompliance and (d) certifying that the Developer is not in default with respect to any provision of the RDA, the agreements evidencing the Lender Financing, if any, or any related agreements; provided, that the obligations to be covered by the Annual Compliance Report shall include the following: (1) compliance with the Operating Covenant (Section 8.06); (2) compliance with the Jobs Covenant (Section 8.06); (3) delivery of Financial Statements and unaudited financial statements (Section 8.13); (4) delivery of updated insurance certificates, if applicable (Section 8.14); (5) delivery of evidence of payment of Non-Governmental Charges, if applicable (Section 8.15); and (6) compliance with all other executory provisions of the RDA.

AAvailable Project Funds" shall have the meaning set forth for such term in Section 4.07 hereof.

ABond(s)" shall have the meaning set forth for such term in Section 8.05 hereof.

ABond Ordinance" shall mean the City ordinance authorizing the issuance of Bonds.

ABusiness Relationship" shall have the meaning set forth for such term in Section 2-156-080 of the Municipal Code of Chicago.

ACertificate" shall mean the Certificate of Completion of Construction described in Section 7.01 hereof.

AChange Order" shall mean any amendment or modification to the Scope Drawings, Plans and Specifications or the Project Budget as described in Section 3.03, Section 3.04 and Section 3.05, respectively.

ACity Contract" shall have the meaning set forth in Section 8.01 (I) hereof.

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ACity Council" shall have the meaning set forth in the Recitals hereof.

ACity Funds" shall mean the funds described in Section 4.03(b} hereof.

ACiosing Date" shall mean the date of execution and delivery of this Agreement by all parties hereto, which shall be deemed to be the date appearing in the first paragraph of this Agreement.

AContract" shall have the meaning set forth in Section 10.03 hereof.

A Contractor'' shall have the meaning set forth in Section 10.03 hereof.

AConstruction Contract" shall mean that certain contract, substantially in the form attached hereto as Exhibit E, to be entered into between the Developer and the General Contractor providing for construction of the Project.

ACorporation Counsel" shall mean the City's Office of Corporation Counsel.

AEmployer(s)" shall have the meaning set forth in Section 10 hereof.

AEnvironmental Laws" shall mean any and all federal, state or local statutes, laws, regulations, ordinances, codes, rules, orders, licenses, judgments, decrees or requirements relating to public health and safety and the environment now or hereafter in force, as amended and hereafter ame[Jded, including but not limited to (i) the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S. C. Section 9601 et seq.); (ii) any so-called ASuperfund" or ASuperlien" law; (iii) the Hazardous Materials Transportation Act (49 U.S.C. Section 1802 et seq.); (iv) the Resource Conservation and Recovery Act (42 U.S.C. Section 6902 et seq.); (v) the Clean Air Act (42 U.S.C. Section 7401 et seq.); (vi) the Clean Water Act (33 U.S.C. Section 1251 et seq.); (vii) the Toxic Substances Control Act (15 U.S.C. Section 2601 et seq.); (viii) the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. Section 136 et seq.); (ix) the Illinois Environmental Protection Act (415 ILCS 5/1 et seq.); and (x) the Municipal Code of Chicago.

AEillillv" shall mean funds of the Developer (other than funds derived from Lender Financing) irrevocably available for the Project, in the amount set forth in Section 4.01 hereof, which amount may be increased pursuant to Section 4.06 (Cost Overruns) or Section 4.03(b}.

AEscrow" shall mean the construction escrow established pursuant to the Escrow Agreement.

AEscrow Agreement" shall mean the Escrow Agreement establishing a construction escrow, to be entered into as of the date hereof by the Title Company (or an affiliate of the Title Company), the Developer and the Developer's lender(s), substantially in the form of Exhibit F attached hereto.

AEvent of Default" shall have the meaning set forth in Section 15 hereof.

AFacility" shall have the meaning set forth in the Recitals hereof.

AFinancial Statements" shall mean complete audited financial statements of the Developer prepared by a certified public accountant in accordance with generally accepted accounting principles and practices consistently applied throughout the appropriate periods. ·

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AGeneral Contractor" shall mean the general contractor(s) hired by the Developer pursuant to Section 6.01.

AHazardous Materials" shall mean any toxic substance, hazardous substance, hazardous material, hazardous chemical or hazardous, toxic or dangerous waste defined or qualifying as such in (or for the purposes of) any Environmental Law, or any pollutant or contaminant, and shall include, but not be limited to, petroleum (including crude oil), any radioactive material or by-product material, polychlorinated biphenyls and asbestos in any form or condition.

AHuman Rights Ordinance" shall have the meaning set forth in Section 10 hereof.

Aln Balance" shall have the meaning set forth in Section 4.07 hereof.

Alncremental Taxes" shall mean such ad valorem taxes which, pursuant to the TIF Adoption Ordinance and Section 5/11-74.4-S(b) of the Act, are allocated to and when collected are paid to the Treasurer of the City of Chicago for deposit by the Treasurer into the Near West TIF Fund established to pay Redevelopment Project Costs and obligations incurred in the payment thereof.

Alndemnitee" and Alndemnitees" shall have the meanings set forth in Section 13.01 hereof.

Alender Financing" shall mean funds borrowed by the Developer from lenders and irrevocably available to pay for Costs of the Project, in the amount set forth in Section 4.01 hereof.

AMBE(s)" shall mean a business identified in the Directory of Certified Minority Business Enterprises published by the City's Department of Procurement Services, or otherwise certified by the City's Department of Procurement Services as a minority-owned business enterprise, related to the Procurement Program or the Construction Program, as applicable.

AMBE/WBE Program" shall have the meaning set forth in Section 10.03 hereof.

AMunicipal Code" shall mean the Municipal Code of the City of Chicago.

ANear West TIF Fund" shall mean_the special tax allocation fund created by the City in connection with the Redevelopment Area into which the Incremental Taxes will be deposited.

ANew Mortgage" shall have the meaning set forth in Article 16 hereof.

ANon-Governmental Charges" shall mean all non-governmental charges, liens, claims, or encumbrances relating to the Developer, the Property or the Project.

APermitted Liens" shall mean those liens and encumbrances against the Property and/or the Project set forth on Exhibit G hereto.

APermitted Mortgage" shall have the meaning set forth in Article 16 hereof.

APians and Specifications" shall mean initial construction documents containing a site plan and working drawings and specifications for the Project, as submitted to the City as the basis for obtaining building permits for the Project.

APrior Expenditure(s)" shall have the meaning set forth in Section 4.05(a) hereof.

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AProject" shall have the meaning set forth in the Recitals hereof.

AProject Budget" shall mean the budget attached hereto as Exhibit H, showing the total cost of the Project by line item, furnished by the Developer to DHED, in accordance with Section 3.03 hereof.

AProperty" shall have the meaning set forth in the Recitals hereof.

ARedevelopment Area" shall have the meaning set forth in the Recitals hereof.

ARedevelopment Plan" shall have the meaning set forth in the Recitals hereof.

ARedevelopment Project Costs" shall mean redevelopment project costs as defined in Section 5/11-7 4.4-3(q) of the Act that are included in the budget set forth in the Redevelopment Plan or otherwise referenced in the Redevelopment Plan.

ARequisition Form" shall mean the document, in the form attached hereto as Exhibit K, to be delivered by the Developer to DHED pursuant to Section 4.04 of this Agreement.

AS cope Drawings" shall mean preliminary construction documents containing a site plan and preliminary drawings and specifications for the Project.

ASurvey" shall mean a Class A plat of survey in the most recently revised form of AL T AIACSM urban survey of the Property dated within 45 days prior to the Closing Date, acceptable in form and content to the City and the Title Company, prepared by a surveyor registered in the State of Illinois, certified to the City and the Title Company, and indicating whether the Property is in a flood hazard area as identified by the United States Federal Emergency Management Agency (and updates thereof to reflect improvements to the Property in connection with the construction of the Facility and related improvements as required by the City or lender(s) providing Lender Financing).

A Term" shall mean the period of time commencing on the Closing Date and ending on the later of (a) [September 1, 2023], and (b) the date on which the Redevelopment Area is no longer in effect (through and including December 31, 2013).

ATIF Adoption Ordinance" shall have the meaning set forth in the Recitals hereof.

ATIF Bonds" shall have the meaning set forth in the Recitals hereof.

ATIF Bond Ordinance" shall have the meaning set forth in the Recitals hereof.

ATIF-Funded Improvements" shall mean those improvements of the Project which (i) qualify as Redevelopment Project Costs, (ii) are eligible costs under the Redevelopment Plan and (iii) the City has agreed to pay for out of the City Funds, subject to the terms of this Agreement. Exhibit C lists the TIF-Funded Improvements for the Project.

A TIF Ordinances" shall have the meaning set forth in the Recitals hereof.

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A Title Company" shall mean Title Services, Inc., or such other title company acceptable to the City and the Developer.

A Title Policy" shall mean a title insurance policy in the most recently revised ALTA or equivalent form, showing the Developer as the insured, noting the recording of this Agreement as an encumbrance against the Property, and a subordination agreement in favor of the City with respect to previously recorded liens against the Property related to Lender Financing, if any, issued by the Title Company.

A WARN Act" shall mean the Worker Adjustment and Retraining Notification Act (29 U.S.C. Section 2101 et seq.).

AWBE(s)" shall mean a business identified in the Directory of Certified Women Business Enterprises published by the City's Department of Procurement Services, or otherwise certified by the City's Department of Procurement Services as a women-owned business enterprise, related to the Procurement Program or the Construction Program, as applicable.·

SECTION 3. THE PROJECT

3.01 The Project. With respect to the Facility, the Developer shall, pursuant to the Plans and Specifications and subject to the provisions of Section 18.17 hereof: (i) commence construction no later than thirty (30) days after the Closing Date; and (ii) complete construction and conduct business operations therein no later than the second (2"d) anniversary of the Closing Date, subject to the provisions of Section 18.17 (Force Majeure).

3.02 Scope Drawings and Plans and Specifications. The Developer has delivered the Scope Drawings and Plans and Specifications to DHED and DHED has approved same. After such initial approval, subsequent proposed changes to the Scope Drawings or Plans and Specifications shall be submitted to DHED as a Change Order pursuant to Section 3.04 hereof. The Scope Drawings and Plans and Specifications shall at all times conform to the Redevelopment Plan and all applicable federal, state and local laws, ordinances and regulations. The Developer shall submit all necessary documents to the City's Building Department, Department of Transportation and such other City departments or governmental authorities as may be necessary to acquire building permits and other required approvals for the Project.

3.03 Project Budget. The Developer has furnished to DHED, and DHED has approved, a Project Budget showing total costs for the Project in an amount not less than Seventeen Million Four Hundred Sixty Three Thousand Sixty-Three Dollars ($17,463,063). The Developer hereby certifies to the City that (a) it has Lender Financing and Equity in an amount sufficient to pay for all Project costs; and (b) the Project Budget is true, correct and complete in all material respects. The Developer shall promptly deliver to DHED certified copies of any Change Orders with respect to the Project Budget for approval pursuant to Section 3.04 hereof.

3.04 Change Orders. Except as provided below, all Change Orders (and documentation substantiating the need and identifying the source of funding therefor) relating to material changes to the Project must be submitted by the Developer to DHED for DHED's prior written approval. The Developer shall not authorize or permit the performance of any work relating to any Change Order or the furnishing of materials in connection therewith prior to the receipt by the Developer of DHED's written approval. The Construction Contract, and each contract between the General Contractor and any subcontractor, shall contain a provision to this effect. An approved Change Order shall not

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be deemed to imply any obligation on the part of the City to increase the amount of City Funds which the City has pledged pursuant to this Agreement or provide any other additional assistance to the Developer_

3.05 DHED Approval. Any approval granted by DHED of the Scope Drawings, Plans and Specifications and the Change Orders is for the purposes of this Agreement only and does not affect or constitute any approval required by any other City department or pursuant to any City ordinance, code, regulation or any other governmental approval, nor does any approval by DHED pursuant to this Agreement constitute approval of the quality, structural soundness or safety of the Property or the Project.

3.06 Other Approvals. Any DHED approval under this Agreement shall have no effect upon, nor shall it operate as a waiver of, the Developer's obligations to comply with the provisions of Section 5.03 (Other Governmental Approvals) hereof. The Developer shall not commence construction of the Project until the Developer has obtained all necessary permits and approvals (including but not limited to DHED's approval of the Scope Drawings and Plans and Specifications) and proof of the General Contractor's and each subcontractor's bonding as required hereunder_

3.07 Progress Reports and Survey Updates. The Developer shall provide DHED with written quarterly progress reports detailing the status of the Project, including a revised completion date, if necessary (with any change in completion date being considered a Change Order, requiring DHED's written approval pursuant to Section 3.04). The Developer shall provide three (3) copies of an updated Survey to DHED upon the request of DHED or any lender providing Lender Financing, reflecting improvements made to the Property.

3.08 Inspecting Agent or Architect. An independent agent or architect (other than the Developer's architect) approved by DHED shall be selected to act as the inspecting agent or architect, at the Developer's expense, for the Project. The inspecting agent or architect shall perform periodic inspections with respect to the Project, providing certifications with respect thereto to DHED, prior to requests for disbursement for costs related to the Project hereunder.

3.09 Barricades. Prior to commencing any construction requiring barricades, the Developer shall install a construction barricade of a type and appearance satisfactory to the City and constructed in compliance with all applicable federal, state or City laws, ordinances and regulations.­DHED retains the right to approve the maintenance, appearance, color scheme, painting, nature,

type, content and design of all barricades_

3.1 0 Signs and Public Relations. The Developer shall erect a sign of size and style approved by the City in a conspicuous location on the Property during the Project, indicating that financing has been provided by the City. The City reserves the right to include the name, photograph, artistic rendering of the Project and other pertinent information regarding the Developer, the Property and the Project in the City's promotional literature and communications.

3.11 Utility Connections. The Developer may connect all on-site water, sanitary, storm and sewer lines constructed on the Property to City utility lines existing on or near the perimeter of the Property, provided the Developer first complies with all City requirements governing such connections, including the payment of customary fees and costs related thereto.

3.12 Permit Fees. In connection with the Project, the Developer shall be obligated to pay only those building, permit, engineering, tap on and inspection fees that are assessed on a uniform

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basis throughout the City of Chicago and are of general applicability to other property within the City of Chicago.

SECTION 4. FINANCING

4.01 Total Project Cost and Sources of Funds. The cost of the Project is estimated to be not less than $17,463,063, to be applied in the manner set forth in the Project Budget Such costs shall be funded from the following sources:

Equity (subject to Sections 4.03(b) and 4.06) City Multi-Family Loan Funds City Funds

ESTIMATED TOTAL

$12,289,920* $ 3,883,673 $ 1,289,470

$17,463,063

*Includes approximately $8,650,000 of Section 42 tax credit equity to be bridged with a private construction loan during construction (the "Citi Construction Loan"), approximately $549,000 of FHLB AHP funds anticipated to be loaned to the Owner by IHDC, and approximately $145,346 of DCEO funds anticipated to be loaned to the Owner by IHDC.

4.02 Developer Funds. Equity and/or Lender Financing shall be used to pay all Project costs, including but not limited to Redevelopment Project costs and costs of TIF-Funded Improvements.

4.03 City Funds.

(a) Uses of City Funds. City Funds may only be used to pay directly or reimburse IHDC for costs of TIF-Funded Improvements that constitute Redevelopment Project Costs. Exhibit C sets forth, by line item, the TIF-Funded Improvements for the Project, and the maximum amount of costs that may be paid by or reimbursed from City Funds for each line item therein (subject to Sections 4.03(b) and 4.05(d)), contingent upon receipt by the City of documentation satisfactory in form and substance to DHED evidencing such cost and its eligibility as a Redevelopment Project Cost

(b) Sources of City Funds. Subject to the terms and conditions of this Agreement, including but not limited to this Section 4.03 and Section 5 hereof, the City hereby agrees to provide City funds of (i) up to $1,123,424.16 upon execution of this Agreement, and (ii) up to $166,045.84 on or before December 31,2013, in Incremental Taxes (the ACity Funds") to pay for or reimburse the Developer for the costs of the TIF-Funded fmprovements, provided, however, that the $1,289,470 to be derived from Incremental Taxes shall be available to pay costs related to TIF-Funded Improvements and allocated by the City for that purpose only so long as the amount of the Incremental Taxes deposited into the Near West TIF Fund shall be sufficient to pay for such costs.

The Developer acknowledges and agrees that the City's obligation to pay for TIF-Funded Improvements is contingent upon the fulfillment of the conditions set forth above. In the event that such conditions are not fulfilled, the amount of Equity to be contributed by the Developer pursuant to Section 4.01 hereof shall increase proportionately.

4.04 Requisition Form. On or before the Closing Date with respect to the first Requisition and not later than November 30, 2013 (or such other date as the parties may agree to) with respect to the second Requisition, IHDC shall provide DHED with a Requisition Form, along with the documentation described therein. Requisition for reimbursement ofTIF-Funded Improvements shall

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be made only twice (or as otherwise permitted by DHED), and in amounts not to exceed the amounts set forth above in Section 4.03(b). IHDC shall meet with DHED at the request of DHED to discuss the Requisition Form(s) previously delivered.

4.05 Treatment of Prior Expenditures . Only those expenditures made by the Owner or I HDC with respect to the Project prior to the Closing Date, evidenced by documentation satisfactory to DHED and approved by DHED as satisfying costs covered in the Project Budget, shall be considered previously contributed Equity or Lender Financing hereunder (the APrior Expenditures"). DHED shall have the right, in its sole discretion, to disallow any such expenditure as a Prior

Expenditure. Exhibit I hereto sets forth the prior expenditures approved by DHED as of the date hereof as Prior Expenditures. Prior Expenditures made for items other than TIF-Funded Improvements shall not be reimbursed to the Owner or IHDC, but shall reduce the amount of Equity and/or Lender Financing required to be contributed by the Developer pursuant to Section 4.01 hereof.

4.06 Cost Overruns. If the aggregate cost of the TIF-Funded Improvements exceeds City Funds available pursuant to Section 4.03 hereof, or if the cost of completing the Project exceeds the Project Budget, the Developer shall be solely responsible for such excess cost, and shall hold the City harmless from any and all costs and expenses of completing the TIF-Funded Improvements in excess of City Funds and of completing the Project.

4.07 Preconditions of Disbursement. Prior to each disbursement of City Funds hereunder, IHDC shall submit documentation regarding the applicable expenditures to DHED, which shall be satisfactory to DHED in its sole discretion. Delivery by IHDC to DHED of any request for disbursement of City Funds hereunder shall, in addition to the items therein expressly set forth, constitute a certification to the City, as of the date of such request for disbursement, that:

(a) the total amount of the disbursement request represents the actual cost of the Acquisition or the actual amount payable to (or paid to) the General Contractor and/or subcontractors who have performed work on the Project, and/or their payees;

(b) all amounts shown as previous payments on the current disbursement request have been paid to the parties entitled to such payment;

(c) the Developer has approved all work and materials for the current disbursement request,. and such work and materials conform to the Plans and Specifications;

(d) the representations and warranties contained in this Redevelopment Agreement are true and correct and the Developer is in compliance with all covenants contained herein;

(e) the Developer has received no notice and has no knowledge of any liens or claim of lien either filed or threatened against the Property except for the Permitted Liens and/or liens bonded by the Developer or insured by the Title Company;

(f) no Event of Default or condition or event which, with the giving of notice or passage of time or both, would constitute an Event of Default exists or has occurred; and

(g) the Project is In Balance. The Project shall be deemed to be in balance (Ain Balance") only if the total of the available Project funds equals or exceeds the aggregate of the amount necessary to pay all unpaid Project costs incurred or to be incurred in the completion of the Project.

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AAvailable Project Funds" as used herein shall mean: (i) the undisbursed City Funds; (ii) the undisbursed Lender Financing, if any; (iii) the undisbursed Equity and (iv) any other amounts deposited by the Developer pursuant to this Agreement. The Developer hereby agrees that, if the Project is not In Balance, the Developer shall, within 10 days after a written request by the City, deposit with the escrow agent or will make available (in a manner acceptable to the City), cash in an amount that will place the Project In Balance, which deposit shall first be exhausted before any further disbursement of the City Funds shall be made.

The City shall have the right, in its discretion, to require the Developer to submit further documentation as the City may require in order to verify that the matters certified to above are true and correct, and any disbursement by the City shall be subject to the City's review and approval of such documentation and its satisfaction that such certifications are true and correct; provided, however, that nothing in this sentence shall be deemed to prevent the City from relying on such certifications by the Developer. In addition, the Developer shall have satisfied all other preconditions of disbursement of City Funds for each disbursement, including but not limited to requirements set forth in the Bond Ordinance, if any, TIF Bond Ordinance, if any, the Bonds, if any, the TIF Bonds, if any, the TIF Ordinances, this Agreement and/or the Escrow Agreement.

SECTION 5. CONDITIONS PRECEDENT

The following conditions have been complied with to the City's satisfaction on or prior to the Closing Date:

5.01 Project Budget. The Developer has submitted to DHED, and DHED has approved, a Project Budget in accordance with the provisions of Section 3.03 hereof.

5.02 Scope Drawings and Plans and Specifications. The Developer has submitted to DHED, and DHED has approved, the Scope Drawings and Plans and Specifications accordance with the provisions of Section 3.02 hereof.

5.03 Other Governmental Approvals. The Developer has secured all other necessary approvals and permits required by any state, federal, or local statute, ordinance or regulation and has submitted evidence thereof to DHED.

5. 04 Financing. The Developer has furnished proof reasonably acceptable to the City that the Developer has Equity and Lender Financing in the amounts set forth in Section 4.01 hereof to complete the Project and satisfy its obligations under this Agreement. If a portion of such funds consists of Lender Financing, the Developer has furnished proof as of the Closing Date that the proceeds thereof are available to be drawn upon by the Developer as needed and are sufficient (along with other sources set forth in Section 4.01) to complete the Project. The Developer has delivered to DHED a copy of the construction escrow agreement entered into by the Developer regarding the Lender Financing. Any liens against the Property in existence at the Closing Date have been subordinated to certain encumbrances of the City set forth herein pursuant to a Subordination Agreement, in a form acceptable to the City, executed on or prior to the Closing Date, which is to be recorded, at the expense of the Developer, with the Office of the Recorder of Deeds of Cook County.

5.05 Acquisition and Title. On the Closing Date, the Developer has furnished the City with a copy of the Title Policy for the Property, certified by the Title Company, showing the Owner as the named insured. The Title Policy is dated as of the Closing Date and contains only those title exceptions listed as Permitted Liens on Exhibit G hereto and evidences the recording of this

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I ,-.- .. -··- -- .... -~;:::~-~~-~ur~~~~~-t~ the provisions of Section 8.18 hereof. The Title Policy also contains such

endorsements as shall be required by Corporation Counsel, including but not limited to an owner's comprehensive endorsement and satisfactory endorsements regarding zoning (3.1 with parking), contiguity, location, access and survey. The Developer has provided to DHED, on or prior to the Closing Date, documentation related to the purchase of the Property and certified copies of all easements and encumbrances of record with respect to the Property not addressed, to DHED's satisfaction, by the Title Policy and any endorsements thereto.

5.06 Evidence of Clean Title. The Developer, at its own expense, has provided the City with searches under the Developer's name as follows:

Secretary of State UCC search Secretary of State Federal tax search Cook County Recorder UCC search Cook County Recorder Fixtures search Cook County Recorder Federal tax search Cook County Recorder State tax search Cook County Recorder Memoranda of judgments search U.S. District Court Pending suits and judgments Clerk of Circuit Court, Pending suits and judgments

Cook County

showing no liens against the Developer, the Property or any fixtures now or hereafter affixed thereto, except for the Permitted Liens.

5.07 Surveys. The Developer has furnished the City with three (3) copies of the Survey.

5.08 Insurance. The Developer, at its own expense, has insured the Property in accordance with Section 12 hereof, and has delivered certificates required pursuant to Section 12 hereof evidencing the required coverages to DHED.

5.09 Opinion of the Developer's Counsel. On the Closing Date, the Developer has furnished the City with an opinion of counsel, substantially in the form attached hereto as Exhibit J, with such changes as required by or acceptable to Corporation Counsel. If the Developer has engaged special counsel in connection with the Project, and such special counsel is unwilling or unable to give some of the opinions set forth in Exhibit J hereto, such opinions were obtained by the Developer ·from its general corporate counsel. ·

5.10 Evidence of Prior Expenditures. The Developer has provided evidence satisfactory to DHED in its sole discretion of the Prior Expenditures in accordance with the provisions of Section 4.05(a) hereof.

5.11 Financial Statements. The Developer has provided Financial Statements to DHED for its most recent fiscal year, and audited or unaudited interim financial statements.

5.12 Documentation. The Developer has provided documentation to DHED, satisfactory in form and substance to DHED, with respect to current employment matters.

5.13 Environmental. The Developer has provided DHED with copies of that certain phase I environmental audit completed with respect to the Property and any phase II environmental audit with respect to the Property required by the City. The Developer has provided the City with a letter

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from the environmental engineer(s) who completed such audit(s), authorizing the City to rely on such audits.

5.14 Corporate Documents; Economic Disclosure Statement. The Owner has provided a copy of its Certificate of Existence and IHDC has provided a copy of its Articles of Incorporation, each containing the original certification of the Secretary of State of its state of its organization; certificates of good standing from the Secretary of State of its state of organization and all other states in which the Developer is qualified to do business; a secretary's certificate in such form and substance as the Corporation Counsel may require; Limited Partnership Agreement of the limited partner; By-laws of the corporation; and such other documentation as the City has requested. The Developer has provided to the City an Economic Disclosure Statement, in the City's then current form, dated as of the Closing Date.

5.15 Litigation. The Developer has provided to Corporation Counsel and DHED, a description of all pending or threatened litigation or administrative proceedings involving the Developer, specifying, in each case, the amount of each claim, an estimate of probable liability, the amount of any reserves taken in connection therewith and whether (and to what extent) such potential liability is covered by insurance.

SECTION 6. AGREEMENTS WITH CONTRACTORS

6.01 Bid Requirement for General Contractor and Subcontractors. (a) Except as set forth in Section 6.01 (b) below, prior to entering into an agreement with a General Contractor or any subcontractor for construction of the Project, the Developer shall solicit, or shall cause the General Contractor to solicit, bids from qualified contractors eligible to do business with, and having an office located in, the City of Chicago, and shall submit all bids received to DHED for its inspection and written approval. (i) For the TIF-Funded Improvements, the Developer shall select the General Contractor (or shall cause the General Contractor to select the subcontractor) submitting the lowest responsible bid who can complete the Project" in a timely manner. If the Developer selects a General Contractor (or the General Contractor selects any subcontractor) submitting other than the lowest responsible bid for the TIF-Funded Improvements, the difference between the lowest responsible bid and the bid selected may not be paid out of City Funds. (ii) For Project work other than the TIF-Funded Improvements, if the Developer selects a General Contractor (or the General Contractor selects any subcontractor) who has not submitted the lowest responsible bid, the difference between the lowest responsible bid and the higher bid selected shall be subtracted from the actual total Project costs for purposes of the calculation of the amount of City Funds to be contributed to the Project pursuant to Section 4.03(b) hereof. The Developer shall submit copies of the Construction Contract to DHED in accordance with Section 6.02 below. Photocopies of all subcontracts entered or to be entered into in connection with the TIF-Funded Improvements shall be provided to DHED within five (5) business days of the execution thereof. The Developer shall ensure that the General Contractor shall not (and shall cause the General Contractor to ensure that the subcontractors shall not) begin work on the Project until the Plans and Specifications have been approved by DHED and all requisite permits have been obtained.

(b) If, prior to entering into an agreement with a General Contractor for construction of the Project, the Developer does not solicit bids pursuant to Section 6.01 (a) hereof, then the fee of the General Contractor proposed to be paid out of City Funds shall not exceed [14%] of the total amount of the Construction Contract. Except as explicitly stated in this paragraph, all other provisions of Section 6.01 (a) shall apply, including but not limited to the requirement that the General Contractor shall solicit competitive bids from all subcontractors.

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6.02 Construction Contract. Prior to the execution thereof, the Developer shall deliver to DHED a copy of the proposed Construction Contract with the General Contractor selected to handle the Project in accordance with Section 6.01 above, for DHED's prior written approval, which shall be granted or denied within ten (1 0) business days after delivery thereof. Within ten (1 0) business days after execution of such contract by the Developer, the General Contractor and any other parties thereto, the Developer shall deliver to DHED and Corporation Counsel a certified copy of such contract together with any modifications, amendments or supplements thereto.

6.03 Performance and Payment Bonds. Prior to the commencement of any portion of the Project which includes work on the public way, the Developer shall require that the General Contractor be bonded for its payment by sureties having an AA rating or better using a bond acceptable in form to the City. The City shall be named as obligee or co-obligee on any such bonds.

6.04 Employment Opportunity. The Developer shall contractually obligate and cause the General Contractor and each subcontractor to agree to the provisions of Section 10 hereof.

6.05 Other Provisions. In addition to the requirements of this Section 6, the Construction Contract and each contract with any subcontractor shall contain provisions required pursuant to Section 3.04 (Change Orders), Section 8.09 (Prevailing Wage), Section 10.01(e) (Employment Opportunity), Section 10.02 (City Resident Employment Requirement), Section 10.03 (MBE/WBE Requirements, as applicable), Section 12 (Insurance) and Section 14.01 (Books and Records) hereof. Photocopies of all contracts or subcontracts entered or to be entered into in connection with the TIF-Funded Improvements shall be provided to DHED within five (5) business days of the execution thereof.

SECTION 7. COMPLETION OF CONSTRUCTION OR REHABILITATION

7.01 Certificate of Completion of Construction or Rehabilitation. Upon completion of the construction of the Project in accordance with the terms of this Agreement, and upon the Developer's written request, DHED shall issue to the Developer a Certificate in recordable form certifying that the Developer has fulfilled its obligation to complete the Project in accordance with the terms of this Agreement. DHED shall respond to the Developer's written request for a Certificate within forty-five (45) days by issuing either a Certificate or a written statement detailing the ways in which the Project does not conform to this Agreement or has not been satisfactorily completed, and the measures which must be taken by the Developer in order to obtain the Certificate. The Developer may resubmit a written request for a Certificate upon completion of su_ch measures.

7.02 Effect of Issuance of Certificate; Continuing Obligations. The Certificate relates only to the construction of the Project, and upon its issuance, the City will certify that the terms of the Agreement specifically related to the Developer's obligation to complete such activities have been satisfied. After the issuance of a Certificate, however, all executory terms and conditions of this Agreement and all representations and covenants contained herein will continue to remain in full force and effect_ throughout the Term of the Agreement as to the parties described in the following paragraph, and the issuance of the Certificate shall not be construed as a waiver by the City of any of its rights and remedies pursuant to such executory terms.

Those covenants specifically described at Sections 8.02, 8.06, and 8.19 as covenants that run with the land are the only covenants in this Agreement intended to be binding upon any transferee of the Property (including an assignee as described in the following sentence) throughout the Term of the Agreement notwithstanding the issuance of a Certificate; provided, that upon the issuance of a Certificate, the covenants set forth in Section 8.02 shall be deemed to have been

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fulfilled. The other executory terms of this Agreement that remain after the issuance of a Certificate shall be binding only upon the Developer or a permitted assignee ofthe Developer who, pursuantto Section 18.15 of this Agreement, has contracted to take an assignment of the Developer's rights under this Agreement and assume the Developer's liabilities hereunder.

7.03 Failure to Complete. If the Developer fails to complete the Project in accordance with the terms of this Agreement, then the City has, but shall not be limited to, any of the following rights and remedies:

(a) the right to terminate this Agreement and cease all disbursement of City Funds not yet disbursed pursuant hereto;

(b) the right (but not the obligation) to complete those TIF-Funded Improvements that are public improvements and to pay for the costs of TIF-Funded Improvements (including interest costs) out of City Funds or other City monies. In the event that the aggregate cost of completing the TIF­Funded Improvements exceeds the amount of City Funds available pursuant to Section 4.01, the Developer shall reimburse the City for all reasonable costs and expenses incurred by the City in completing such TIF-Funded Improvements in excess of the available City Funds; and

(c) the right to seek reimbursement of the City Funds from the Developer.

7.04 Notice of Expiration of Term of Agreement. Upon the expiration of the Term of the Agreement, DHED shall provide the Developer, at the Developer's written request, with a written notice in recordable form stating that the Term of the Agreement has expired.

SECTION 8. COVENANTS/REPRESENTATIONS/WARRANTIES OF THE DEVELOPER.

8.01 General. Each of the Owner and IHDC represents, warrants and covenants, as of the date of this Agreement and as of the date of each disbursement of City Funds hereunder, that:

(a) the Owner is an Illinois limited partnership and IHDC is an Illinois not-for-profit corporation, each duly organized, validly existing, qualified to do business in Illinois, and each licensed to do business in any other state where, due to the nature of its activities or properties, such qualification or license is required;

(b) the Developer has the right, power and authority to enter into, execute, deliver and perform this Agreement;

(c) the execution, delivery and performance by the Developer of this Agreement has been duly authorized by all necessary action, and does not and will not violate (as applicable) its organizational documents, as amended and supplemented, any applicable provision of law, or constitute a breach of, default under or require any consent under any agreement, instrument or document to which the Developer is now a party or by which the Developer is now or may become bound;

(d) unless otherwise permitted or not prohibited pursuant to or under the terms of this Agreement, the Owner shall acquire and shall maintain good, indefeasible and merchantable fee simple title to the Property (and all improvements thereon) free and clear of all liens (except for the Permitted Liens, Lender Financing as disclosed in the Project Budget and non-governmental charges that the Developer is contesting in good faith pursuant to Section 8.15 hereof)

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(e) the Developer is now and for the Term of the Agreement shall remain solvent and able to pay its debts as they mature;

(f) there are no actions or proceedings by or before any court, governmental commission, board, bureau or any other administrative agency pending, threatened or affecting the Developer which would impair its ability to perform under this Agreement; ·

(g) the Developer has and shall maintain all government permits, certificates and consents (including, without limitation, appropriate environmental approvals) necessary to conduct its business and to construct, complete and operate the Project;

(h) the Developer is not in default with respect to any indenture, loan agreement, mortgage, deed, note or any other agreement or instrument related to the borrowing of money to which the Developer is a party or by which the Developer is bound;

(i) the Financial Statements are, and when hereafter required to be submitted will be, complete, correct in all material respects and accurately present the assets, liabilities, results of operations and financial condition of the Developer, and there has been no material adverse change in the assets, liabilities, results of operations or financial condition of the Developer since the date of the Developer's most recent Financial Statements;

U) prior to the issuance of a Certificate, the Developer shall not do any of the following without the prior written consent of DHED: (1) be a party to any merger, liquidation or consolidation; (2) sell, transfer, convey, lease or otherwise dispose of all or substantially all of its assets or any portion of the Property (including but not limited to any fixtures or equipment now or hereafter attached thereto) except in the ordinary course of business; (3) enter into any transaction outside the ordinary course of the Developer's business; (4) assume, guarantee, endorse, or otherwise become liable in connection with the obligations of any other person or entity; or (5) enter into any transaction that would cause a material and detrimental change to the Developer's financial condition;

(k) the Developer has not incurred, and, prior to the issuance of a Certificate, shall not, without the prior written consent of the Commissioner of DHED, allow the existence of any liens against the Property (or improvements thereon) other than the Permitted Liens; or incur any indebtedness, secured or to be secured by the Property (or improvements thereon) or any fixtures now or hereafter attached thereto, except Lender Financing disclosed in the Project Budget; and

(I) has not made or caused to be made, directly or indirectly, any payment, gratuity or offer of employment in connection with the Agreement or any contract paid from the City treasury or pursuant to City ordinance, for services to any City agency (ACity Contract") as an inducement for the City to enter into the Agreement or any City Contract with the Developer in violation of Chapter 2-156-120 of the Municipal Code of the City; and

(m) neither the Developer nor any affiliate of the Developer is listed on any of the following lists maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the Bureau of Industry and Security of the U.S. Department of Commerce or their successors, or on any other list of persons or entities with which the City may not do business under any applicable law, rule, regulation, order or judgment: the Specially Designated Nationals List, the Denied Persons List, the Unverified List, the Entity List and the Debarred List. For purposes of this subparagraph (m) only, the term Aaffiliate," when used to indicate a relationship with a specified

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person or entity, means a person or entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified person or entity, and a person or entity shall be deemed to be controlled by another person or entity, if controlled in any manner whatsoever that results in control in fact by that other person or entity (or that other person or entity and any persons or entities with whom that other person or entity is acting jointly or in concert), whether directly or indirectly and whether through share ownership, a trust, a contract or otherwise.

8.02 Covenant to Redevelop. Upon DHED's approval of the Project Budget, the Scope Drawings and Plans and Specifications as provided in Sections 3.02 and 3.03 hereof, and the Developer's receipt of all required building permits and governmental approvals, the Developer shall redevelop the Property in accordance with this Agreement and all Exhibits attached hereto, the TIF Ordinances, the Scope Drawings, Plans and Specifications, Project Budget and all amendments thereto, and all federal, state and local laws, ordinances, rules, regulations, executive orders and codes applicable to the Project, the Property and/or the Developer. The covenants set forth in this Section shall run with the land and be binding upon any transferee, but shall be deemed satisfied upon issuance by the City of a Certificate with respect thereto.

8.03 Redevelopment Plan. The Developer represents that the Project is and shall be in compliance with all of the terms of the Redevelopment Plan.

8.04 Use of City Funds. City Funds disbursed to IHDC shall be used by IHDC solely to pay for (or to reimburse the Developer for its payment for) the TIF-Funded Improvements as provided in this Agreement.

8.05 Other Bonds. The Developer shall, at the request of the City,, agree to any reasonable amendments to this Agreement that are necessary or desirable in order for the City to issue (in its sole discretion) any bonds in connection with the Redevelopment Area, the proceeds of which may be used to reimburse the City for expenditures made in connection with, or provide a source of funds for the payment for, the TIF-Funded Improvements (the ABonds"); provided, however, that any such amendments shall not have a material adverse effect on the Developer or the Project. The Developer shall, at the Developer's expense, cooperate and provide reasonable assistance in connection with the marketing of any such Bonds, including but not limited to providing written descriptions of the Project, making representations, providing information regarding its financial condition and assisting the City in preparing an offering statement with respect thereto.

8.06 Job Creation and Retention; Covenant to Remain in the City. The Developer shall strive to retain: (a) 81 temporary construction jobs during the construction of the Project; and (b) four full-time equivalent, permanent jobs at the Project within six months of the completion thereof and through the Term. The Developer hereby covenants and agrees to maintain its operations within the City of Chicago at the site described above through the Term.

8.07 Employment Opportunity; Progress Reports. The Developer covenants and agrees to abide by, and contractually obligate and use reasonable efforts to cause the General Contractor and each subcontractor to abide by the terms set forth in Section 1 0 hereof. The Developer shall deliver to the City monthly written progress reports detailing compliance with the requirements of Sections 8.09, 10.02 and 10.03 of this Agreement. If any such reports indicate a shortfall in compliance, the Developer shall also deliver a plan to DHED which shall outline, to DHED's satisfaction, the manner in which the Developer shall correct any shortfall.

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8.08 Employment Profile. The Developer shall submit, and contractually obligate and cause the General Contractor or any subcontractor to submit, to DHED, from time to time, statements of its employment profile upon DHED's request.

8.09 Prevailing Wage. The Project is subject to the requirements of the Davis-Bacon Act, 40 U.S.C. Section 276a et seq. Accordingly, pursuant to 820 ILCS 130/11, Section 11 of the Illinois Prevailing Wage Act (820 ILCS 130/0/01 et seq.), the requirements of Illinois Prevailing Wage Act shall not apply to the Project.

8.10 Arms-Length Transactions. Unless DHED has given its prior written consent with respect thereto, no Affiliate of the Developer may receive any portion of City Funds, directly or indirectly, in payment for work done, services provided or materials supplied in connection with any TIF-Funded Improvement. The Developer shall provide information with respect to any entity to receive City Funds directly or indirectly (whether through payment to the Affiliate by the Developer and reimbursement to the Developer for such costs using City Funds, or otherwise), upon DHED's request, prior to any such disbursement.

8.11 Conflict of Interest. Pursuant to Section 5/11-74.4-4(n) of the Act, the Developer represents, warrants and covenants that, to the best of its knowledge, no member, official, or employee of the City, or of any commission or committee exercising authority over the Project, the Redevelopment Area or the Redevelopment Plan, or any consultant hired by the City or the Developer with respect thereto, owns or controls, has owned or controlled or will own or control any interest, and no such person shall represent any person, as agent or otherwise, who owns or controls, has owned or controlled, or will own or control any interest, direct or indirect, in the Developer's business, the Property or any other property in the Redevelopment Area.

8.12 Disclosure of Interest. The Developer's counsel has no direct or indirect financial ownership interest in the Developer, the Property or any other aspect of the Project.

8.13 Financial Statements. The Developer shall obtain and provide to DHED Financial Statements for the Developer's fiscal year ended 2011 and each year thereafter for the Term of the Agreement. In addition, the Developer shall submit unaudited financial statements as soon as reasonably practical following the close of each fiscal year and for such other periods as DHED may request.

8.14 Insurance. The Developer, at its own expense, shall comply with all provisions of Section 12 hereof. ·

8.15 Non-Governmental Charges. (a) Payment of Non-Governmental Charges. Except for the Permitted Liens, the Developer agrees to pay or cause to be paid when due any Non­Governmental Charge assessed or imposed upon the Project, the Property or any fixtures that are or may become attached thereto, which creates, may create, or appears to create a lien upon all or any portion of the Property or Project; provided however, that if such Non-Governmental Charge may be paid in installments, the Developer may pay the same together with any accrued interest thereon in installments as they become due and before any fine, penalty, interest, or cost may be added thereto for nonpayment. The Developer shall furnish to DHED, within thirty (30) days of DHED's request, official receipts from the appropriate entity, or other proof satisfactory to DHED, evidencing payment of the Non-Governmental Charge in question.

(b) Right to Contest. The Developer has the right, before any delinquency occurs:

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(i) to contest or object in good faith to the amount or validity of any Non­Governmental Charge by appropriate legal proceedings properly and diligently instituted and prosecuted, in such manner as shall stay the collection of the contested Non-Governmental Charge, prevent the imposition of a lien or remove such lien, or prevent the sale or forfeiture of the Property (so long as no such contest or objection shall be deemed or construed to relieve, modify or extend the Developer's covenants to pay any such Non-Governmental Charge at the time and in the manner provided in this Section 8.15); or

(ii) at DHED's sole option, to furnish a good and sufficient bond or other security satisfactory to DHED in such form and amounts as DHED shall require, or a good and sufficient undertaking as may be required or permitted by law to accomplish a stay of any such sale or forfeiture of the Property or any portion thereof or any fixtures that are or may be attached thereto, during the pendency of such contest, adequate to pay fully any such contested Non-Governmental Charge and all interest and penalties upon the adverse determination of such contest.

8.16 Developer's Liabilities. The Developer shall not enter into any transaction that would materially and adversely affect its ability to perform its obligations hereunder or to repay any material liabilities or perform any material obligations of the Developer to any other person or entity. The Developer shall ·immediately notify DHED of any and all events or actions which may materially affect the Developer's ability to carry on its business operations or perform its obligations under this Agreement or any other documents and agreements.

8.17 Compliance with Laws. To the best of the Developer's knowledge, after diligent inquiry, the Property and the Project are and shall be in compliance with all applicable federal, state and local laws, statutes, ordinances, rules, regulations, executive orders and codes pertaining to or affecting the Project and the Property. Upon the City's reque·st, the Developer shall provide evidence satisfactory to the City of such compliance.

8.18 Recording and Filing. The Developer shall cause this Agreement, certain exhibits (as specified by Corporation Counsel), all amendments and supplements hereto to be recorded and filed against the Property on the date hereof in the conveyance and real property records of the county in which the Project is located. The Developer shall pay all fees and charges incurred in connection with any such recording. Upon recording, the Developer shall immediately transmit to the City an executed original of this Agreement showing the date and recording number of record.

8.19 Real Estate Provisions.

(a) Governmental Charges.

(i) Payment of Governmental Charges. The Developer agrees to pay or cause to be paid when due all Governmental Charges (as defined below) which are assessed or imposed upon the Developer, the Property or the Project, or become due and payable, and which create or may create a lien upon the Developer or all or any portion of the Property or the Project. AGovernmental Charge" shall mean all federal, State, county, the City, or other governmental (or any instrumentality, division, agency, body, or department thereof) taxes, levies, assessments, charges, liens, claims or encumbrances (exceptforthose assessed by foreign nations, states other than the State of Illinois, counties of the State other than Cook County, and municipalities other than the City) relating to the Developer, the Property or the Project including but not limited to real estate taxes.

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(ii) Right to Contest. The Developer has the right before any delinquency occurs to contest or object in good faith to the amount or validity of any Governmental Charge by appropriate legal proceedings properly and diligently instituted and prosecuted in such manner as shall stay the collection of the contested Governmental Charge and prevent the imposition of a lien or the sale or forfeiture of the Property. No such contest or objection shall be deemed or construed in any way as relieving, modifying or extending the Developer's covenants to pay any such Governmental Charge at the time and in the manner provided in this Agreement unless the Developer has given prior written notice to DHED of the Developer's intent to contest or object to a Governmental Charge and, unless, at DHED's sole option,

(i) the Developer shall demonstrate to DHED's satisfaction that legal proceedings instituted by the Developer contesting or objecting to a Governmental Charge shall conclusively operate to prevent or remove a lien against, or the sale or forfeiture of, all or any part of the Property to satisfy such Governmental Charge prior to final determination of such proceedings; and/or

(ii) the Developer shall furnish a good and sufficient bond or other security satisfactory to DHED in such form and amounts as DHED shall require, or a good and sufficient undertaking as may be required or permitted by law to accomplish a stay of any such sale or forfeiture of the Property during the pendency of such contest, adequate to pay fully any such contested Governmental Charge and all interest and penalties upon the adverse determination of such contest.

(b) Developer's Failure To Pay Or Discharge Lien. If the Developer fails to pay any Governmental Charge or to obtain discharge of the same, the Developer shall advise DHED thereof in writing, at which time DHED may, but shall not be obligated to, and without waiving or releasing any obligation or liability of the Developer under this Agreement, in DHED's sole discretion, make such payment, or any part thereof, or obtain such discharge and take any other action with respect thereto which DHED deems advisable. All sums so paid by DHED, if any, and any expenses, if any, including reasonable attorneys' fees, court costs, expenses and other charges relating thereto, shall be promptly disbursed to DHED by the Developer. Notwithstanding anything contained herein to the contrary, this paragraph shall not be construed to obligate the City to pay any such Governmental Charge. Additionally, if the Developer fails to pay any Governmental Charge, the City, in its sole discretion, may require the Developer to submit to the City audited Financial Statements at the Developer's own expense.

8.20 Survival of Covenants. All warranties, representations, covenants and agreements of the Developer contained in this Section 8 and elsewhere in this Agreement shall be true, accurate and complete at the time of the Developer's execution of this Agreement, and shall survive the execution, delivery and acceptance hereof by the parties hereto and (except as provided in Section 1 hereof upon the issuance of a Certificate) shall be in effect throughout the Term of the Agreement.

8.21 Annual Compliance Report. Beginning with the issuance of the Certificate and continuing throughout the Term of the Agreement, the Developer shall submit to DHED the Annual Compliance Report within 30 days after the end of the calendar year to which the Annual Compliance Report relates.

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SECTION 9. COVENANTS/REPRESENTATIONS/WARRANTIES OF CITY

9.01 General Covenants. The City represents that it has the authority as a home rule unit of local government to execute and deliver this Agreement and to perform its obligations hereunder.

9.02 Survival of Covenants. All warranties, representations, and covenants of the City contained in this Section 9 or elsewhere in this Agreement shall be true, accurate, and complete at the time of the City's execution of this Agreement, and shall survive the execution, delivery and acceptance hereof by the parties hereto and be in effect throughout the Term of the Agreement.

SECTION 10. DEVELOPER'S EMPLOYMENT OBLIGATIONS

10.01 Employment Opportunity. The Developer, on behalf of itself and its successors and assigns, hereby agrees, and shall contractually obligate its or their various contractors, subcontractors or any Affiliate of the Developer operating on the Property (collectively, with the Developer, the AEmployers" and individually an AEmployer") to agree, that for the Term of this Agreement with respect to Developer and during the period of any other party's provision of services in connection with the construction of the Project or occupation of the Property:

(a) No Employer shall discriminate against any employee or applicant for employment based upon race, religion, color, sex, national origin or ancestry, age, handicap or disability, sexual

· orientation, military discharge status, marital status, parental status or so1,..1rce of income as defined in the City of Chicago Human Rights Ordinance, Chapter 2-160, Section 2-160-010 et seq., Municipal Code, except as otherwise provided by said ordinance and as amended from time to time (the AHuman Rights Ordinance"). Each Employer shall take affirmative action to ensure that applicants are hired and employed without discrimination based upon race, religion, color, sex, national origin or ancestry, age, handicap or disability, sexual orientation, military discharge status, marital status, parental status or source of income and are treated in a non-discriminatory manner with regard to all job-related matters, including without limitation: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Each Employer agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. In addition, the Employers, in all solicitations or advertisements for employees, shall state that all qualified applicants shall receive consideration for employment without discrimination based upon race, religion, color, sex, national origin or ancestry, age, handicap or disability, sexual orientation, military discharge status, marital status, parental status or source of income.

(b) To the greatest extent feasible, each Employer is required to present opportunities for training and employment of low- and moderate-income residents of the City and preferably of the Redevelopment Area; and to provide that contracts for work in connection with the construction of the Project be awarded to business concerns that are located in, or owned in substantial part by persons residing in, the City and preferably in the Redevelopment Area.

(c) Each Employer shall comply with all federal, state and local equal employment and affirmative action statutes, rules and regulations, including but not limited to the City's Human Rights Ordinance and the Illinois Human Rights Act, 7751LCS 5/1-101 et seq. (1993), and any subsequent amendments and regulations promulgated thereto.

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(d) Each Employer, in order to demonstrate compliance with the terms of this Section, shall cooperate with and promptly and accurately respond to inquiries by the City, which has the responsibility to observe and report compliance with equal employment opportunity regulations of federal, state and municipal agencies.

(e) Each Employer shall include the foregoing provisions of subparagraphs (a) through (d) in every contract entered into in connection with the Project, and shall require inclusion of these provisions in every subcontract entered into by any subcontractors, and every agreement with any Affiliate operating on the Property, so that each such provision shall be binding upon each contractor, subcontractor or Affiliate, as the case may be.

(f) Failure to comply with the employment obligations described in this Section 10.01 shall be a basis for the City to pursue remedies under the provisions of Section 15.02 hereof.

10.02 City Resident Construction Worker Employment Requirement. The Developer agrees for itself and its successors and assigns, and shall contractually obligate its General Contractor and shall cause the General Contractor to contractually obligate its subcontractors, as applicable, to agree, that during the construction of the Project they shall comply with the minimum percentage of total worker hours performed by actual residents of the City as specified in Section 2-92-330 of the Municipal Code of Chicago (at least 50 percent of the total worker hours worked by persons on the site of the Project shall be performed by actual residents of the City); provided, however, that in addition to complying with this percentage, the Developer, its General Contractor and each subcontractor shall be required to make good faith efforts to utilize qualified residents of the City in both unskilled and skilled labor positions.

The Developer may request a reduction or waiver of this minimum percentage level of Chicagoans as provided for in Section 2-92-330 of the Municipal Code of Chicago in accordance with standards and procedures developed by the Chief Procurement Officer ofthe City.

AActual residents of the City" shall mean persons domiciled within the City. The domicile is an individual's one and only true, fixed and permanent home and principal establishment.

The Developer, the General Contractor and each subcontractor shall provide for the maintenance of adequate employee residency records to show that actual Chicago residents are employed on the Project. Each Employer shall maintain copies of personal documents supportive of every Chicago employee's actual record of residence.

Weekly certified payroll reports (U.S. Department of Labor Form WH-347 or equivalent) shall be submitted to the Commissioner of DHED in triplicate, which shall identify clearly the actual residence of every employee on each submitted certified payroll. The first time that an employee's name appears on a payroll, the date that the Employer hired the employee should be written in after the employee's name.

The Developer, the General Contractor and each subcontractor shall provide full access to their employment records to the Chief Procurement Officer, the Commissioner of DHED, the Superintendent of the Chicago Police Department, the Inspector General or any duly authorized representative of any of them. The Developer, the General Contractor and each subcontractor shall maintain all relevant personnel data and records for a period of at least three (3) years after final acceptance of the work constituting the Project.

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At the direction of DHED, affidavits and other supporting documentation will be required of the Developer, the General Contractor and each subcontractor to verify or clarify an employee's actual address when doubt or lack of clarity has arisen.

Good faith efforts on the part of the Developer, the General Contractor and each subcontractor to provide utilization of actual Chicago residents (but not sufficient for the granting of a waiver request as provided for in the standards and procedures developed by the Chief Procurement Officer) shall not suffice to replace the actual, verified achievement of the requirements of this Section concerning the worker hours performed by actual Chicago residents.

When work at the Project is completed, in the event that the City has determined that the Developer has failed to ensure the fulfillment of the requirement of this Section concerning the worker hours performed by actual Chicago residents or failed to report in the manner as indicated above, the City will thereby be damaged in the failure to provide the benefit of demonstrable employment to Chicagoans to the degree stipulated in this Section. Therefore, in such a case of non-compliance, it is agreed that 1120 of 1 percent (0.0005) of the aggregate hard construction costs set forth in the Project budget (the product of .0005 x such aggregate hard construction costs) (as the same shall be evidenced by approved contract value for the actual contracts) shall be surrendered by the Developer to the City in payment for each percentage of shortfall toward the stipulated residency requirement. Failure to report the residency of employees entirely and correctly shall result in the surrender of the entire liquidated damages as if no Chicago residents were employed in either of the categories. The willful falsification of statements and the certification of payroll data may subject the Developer, the General Contractor and/or the subcontractors to prosecution. Any retainage to cover contract performance that may become due to the Developer pursuant to Section 2-92-250 of the Municipal Code of Chicago may be withheld by the City pending the Chief Procurement Officer's determination as to whether the Developer must surrender damages as provided in this paragraph.

Nothing herein provided shall be construed to be a limitation upon the ANotice of Requirements for Affirmative Action to Ensure Equal Employment Opportunity, Executive Order 11246 " and AStandard Federal Equal Employment Opportunity, Executive Order 11246," or other affirmative action required for equal opportunity under the provisions of this Agreement or related documents.

The Developer shall cause or require the provisions of this Section 10.02 to be included in all construction contracts and subcontracts related to the Project.

10.03. MBE/WBE Commitment. The Developer agrees for itself and its successors and assigns, and, if necessary to meet the requirements set forth herein, shall contractually obligate the General Contractor to agree that during the Project:

(a) Consistent with the findings which support, as applicable, (i) the Minority-Owned and Women-Owned Business Enterprise Procurement Program, Section 2-92-420 et seq., Municipal Code of Chicago (the AProcurement Program"), and (ii) the Minority- and Women-Owned Business Enterprise Construction Program, Section 2-92-650 et seq., Municipal Code of Chicago (the AConstruction Program," and collectively with the Procurement Program, the AMBE/WBE Program"), and in reliance upon the provisions of the MBE/WBE Program to the extent contained in, and as qualified by, the provisions of this Section 1 0.03, during the course of the Project, at least the following percentages of the construction Project Budget shall be expended for contract participation by MBEs and by WBEs:

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(1) At least 24 percent by MBEs. (2) At least four percent by WBEs.

(b) For purposes of this Section 10.03 only, the Developer (and any party to whom a contract is let by the Developer in connection with the Project) shall be deemed a Acontractor" and this Agreement (and any contract let by the Developer in connection with the Project) shall be deemed a Acontract" or a Aconstruction contract" as such terms are defined in Sections 2-92-420 and 2-92-670, Municipal Code of Chicago, as applicable.

(c) Consistent with Sections 2-92-440 and 2-92-720, Municipal Code of Chicago, the Developer's MBEIWBE commitment may be achieved in part by the Developer's status as an MBE or WBE (but only to the extent of any actual work performed on the Project by the Developer) or by a joint venture with one or more MBEs or WBEs (but only to the extent of the lesser of (i) the MBE or WBE participation in such joint venture or (ii) the amount of any actual work performed on the Project by the MBE orWBE), by the Developer utilizing a MBE or a WBE as the General Contractor (but only to the extent of any actual work performed on the Project by the General Contractor), by subcontracting or causing the General Contractor to subcontract a portion of the Project to one or more MBEs or WBEs, or by the purchase of materials or services used in the Project from one or more MBEs or WBEs, or by any combination of the foregoing. Those entities which constitute both a MBE and a WBE shall not be credited more than once with regard to the Developer's MBEIWBE commitment as described in this Section 10.03. In accordance with Section 2-92-730, Municipal Code of Chicago, the Developer shall not substitute any MBE or WBE General Contractor or subcontractor without the prior written approval of DHED.

(d) The Developer shall deliver quarterly reports to the City's monitoring staff during the Project describing its efforts to achieve compliance with this MBEIWBE commitment. Such reports shall include, inter alia, the name and business address of each MBE and WBE solicited by the Developer or the General Contractor to work on the Project, and the responses received from such solicitation, the name and business address of each MBE or WBE actually involved in the Project, a description of the work performed or products or services supplied, the date and amount of such work, product or service, and such other information as may assist the City's monitoring staff in determining the Developer's compliance with this MBE/WBE commitment. The Developer shall maintain records of all relevant data with respect to the utilization of MBEs and WBEs in connection with the Project for at least five years after completion of the Project, and the City's monitoring staff shall have access to all such re~ords maintained by the Developer, on five Business Days' notice, to allow the City to review the Developer's compliance with its commitment to MBE/WBE participation and the status of any MBE or WBE performing any portion of the Project.

(e) Upon the disqualification of any MBE or WBE General Contractor or subcontractor, if such status was misrepresented by the disqualified party, the Developer shall be obligated to discharge or cause to be discharged the disqualified General Contractor or subcontractor, and, if possible, identify and engage a qualified MBE or WBE as a replacement. For purposes of this subsection (e), the disqualification procedures are further described in Sections 2-92-540 and 2-92-730, Municipal Code of Chicago, as applicable.

(f) Any reduction or waiver of the Developer's MBEIWBE commitment as described in this Section 10.03 shall be undertaken in accordance with Sections 2-92-450 and 2-92-730, Municipal Code of Chicago, as applicable.

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(g) Prior to the commencement of the Project, the Developer shall be required to meet with the City's monitoring staff with regard to the Developer's compliance with its obligations under this Section 1 0_03_ The General Contractor and all major subcontractors shall be required to attend this pre-construction meeting. During said meeting, the Developer shall demonstrate to the City's monitoring staff its plan to achieve its obligations under this Section 10.03, the sufficiency of which shall be approved by the City's monitoring staff. During the Project, the Developer shall submit the documentation required by this Section 10.03 to the City's monitoring staff, including the following: (i) subcontractor's activity report; (ii) contractor's certification concerning labor standards and prevailing wage requirements; (iii) contractor letter of understanding; (iv) monthly utilization report; (v) authorization for payroll agent; (vi) certified payroll; (vii) evidence that MBE/WBE contractor associations have been informed of the Project via written notice and hearings; and (viii) evidence of compliance with job creation/job retention requirements_ Failure to submit such documentation on a timely basis, or a determination by the City's monitoring staff, upon analysis of the documentation, that the Developer is not complying with its obligations under this Section 1 0_03, shall, upon the delivery of written notice to the Developer, be deemed an Event of Default. Upon the occurrence of any such Event of Default, in addition to any other remedies provided in this Agreement, the City may: (1) issue a written demand to the Developer to halt the Project,· (2) withhold any further payment of any City Funds to the Developer or the General Contractor, or (3) seek any other remedies against the Developer available at law or in equity.

SECTION 11. ENVIRONMENTAL MATTERS

The Owner hereby represents and warrants to the City that the Owner has conducted environmental studies sufficient to conclude that the Project may be constructed, completed and operated in accordance with all Environmental Laws and this Agreement and all Exhibits attached hereto, the Scope Drawings, Plans and Specifications and all amendments thereto, the Bond Ordinance, if any, and the Redevelopment Plan.

Without limiting any other provisions hereof, the Developer agrees to indemnify, defend and hold the City harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses or claims of any kind whatsoever including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under any Environmental Laws incurred, suffered by or asserted against the City as a direct or indirect result of any of the following, regardless of whether or not caused by, or within the control of the Developer: (i) the presence of any Hazardous Material on or under, or the escape, seepage, leakage, spillage, emission, discharge or release of any Hazardous Material from (A) all or any portion of the Property or (B) any other real property in which the Developer, or any person directly or indirectly controlling, controlled by or under common control with the Developer, holds any estate or interest whatsoever (including, without limitation, any property owned by a land trust in which the beneficial interest is owned, in whole or in part, by the Developer), or (ii) any liens against the Property permitted or imposed by any Environmental Laws, or any actual or asserted liability or obligation of the City or the Developer or any of its Affiliates under any Environmental Laws relating to the Property.

SECTION 12. INSURANCE

The Developer must provide and maintain, at Developer's own expense, or cause to be provided and maintained during the term of this Agreement, the insurance coverage and requirements specified below, insuring all operations related to the Agreement.

(a) Prior to execution and delivery of this Agreement.

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(i) Workers Compensation and Employers Liability

Workers Compensation Insurance, as prescribed by applicable law covering all employees who are to provide work under this Agreement and Employers Liability coverage with limits of not less than $100.000 each accident, illness or disease.

(ii) Commercial General Liability (Primary and Umbrella)

Commercial General Liability Insurance or equivalent with limits of not less than $1,000,000 per occurrence for bodily injury, personal injury, and property damage liability. Coverages must include the following: All premises and operations, products/completed operations independent contractors, separation of insureds, defense, and contractual liability (with no limitation endorsement). The City of Chicago is to be named as an additional insured on a primary, non-contributory basis for any liability arising directly or indirectly from the work.

(iii) All Risk Property

All Risk Property Insurance at replacement value of the property to protect against loss of, damage to, or destruction of the building/facility. The City is to be named as an additional insured and loss payee/mortgagee if applicable.

(b) Construction. Prior to the construction of any portion of the Project, Developer will cause its architects, .contractors, subcontractors, project managers and other parties constructing the Project to procure and maintain the following kinds and amounts of insurance:

(i) Workers Compensation and Employers Liability

Workers Compensation Insurance, as prescribed by applicable law covering all employees who are to provide work under this Agreement and Employers Liability coverage with limits of not less than $ 500,000 each accident, illness or disease.

(ii) Commercial General Liability (Primary and Umbrella)

Commercial General Liability Insurance or equivalent with limits of not less than $2.000,000 per occurrence for bodily injury, personal injury, and property damage liability. Coverages must include the following: All premises and operations, products/completed operations (for a minimum of two (2) years following project completion), explosion, collapse, underground, separation of insureds, defense, and contractual liability (with no limitation endorsement). The City of Chicago is to be named as an additional insured on a primary, non-contributory basis for any liability arising directly or indirectly from the work.

(iii) Automobile Liability (Primary and Umbrella)

When any motor vehicles (owned, non-owned and hired) are used in connection with work to be performed, the Automobile Liability Insurance with limits of not less than $2,000,000 per occurrence for bodily injury and property damage. The City of Chicago is to be named as an additional insured on a primary, non-contributory basis.

· (iv) Railroad Protective Liability

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When any work is to be done adjacent to or on railroad or transit property, Developer must provide cause to be provided with respect to the operations that Contractors perform, Railroad Protective Liability Insurance in the name of railroad or transit entity. The policy must have limits of not less than $2.000,000 per occurrence and $6.000,000 in the aggregate for losses arising out of injuries to or death of all persons, and for damage to or destruction of property, including the loss of use thereof.

(v) All Risk /Builders Risk

When Developer undertakes any construction, including improvements, betterments, and/or repairs, the Developer must provide or cause to be provided All Risk Builders Risk Insurance at replacement cost for materials, supplies, equipment, machinery and fixtures that are or will be part of the project. The City of Chicago is to be named as an additional insured and loss payee/mortgagee if applicable.

(vi) Professional Liability

When any architects, engineers, construction managers or other professional consultants perform work in connection with this Agreement, Professional Liability Insurance covering acts, errors, or omissions must be maintained with limits of not less than $ 1 ,000,000. Coverage must include contractual liability. When policies are renewed or replaced, the policy retroactive date must coincide with, or precede, start of work on the Contract. A claims-made policy which is not renewed or replaced must have an extended reporting period of two (2) years.

(vii) Valuable Papers

When any plans, designs, drawings, specifications and documents are produced or used under this Agreement, Valuable Papers Insurance must be maintained in an amount to insure against any loss whatsoever, and must have limits sufficient to pay for the re-creation and reconstruction of such records.

(viii) Contractors Pollution Liability

When any remediation work is performed which may cause a pollution exposure, the Developer must cause remediation contractor to provide Contractor Pollution Liability covering bodily injury, property damage and other losses caused by pollution conditions that arise from the contract scope of work with limits of not less thari $1,000,000 per occurrence. Coverage must include completed operations, contractual liability, defense, excavation,

environmental cleanup, remediation and disposal. When policies are renewed or replaced, the policy retroactive date must coincide with or precede, start of work on the Agreement. A claims-made policy which is not renewed or replaced must have an extended reporting period of two (2) years. The City of Chicago is to be named as an additional insured.

(c) Post Construction:

(i) All Risk Property Insurance at replacement value of the property to protect against loss of, damage to, or destruction of the building/facility. The City is to be named as an additional insured and loss payee/mortgagee if applicable.

(d) Other Requirements:

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The Developer must furnish the City of Chicago, Department of Housing and Economic Development, City Hall, Room 1000, 121 North LaSalle Street 60602, original Certificates of Insurance, or such similar evidence, to be in force on the date of this Agreement, and Renewal Certificates of Insurance, or such similar evidence, if the coverages have an expiration or renewal date occurring during the term of this Agreement. The Developer must submit evidence of insurance on the City of Chicago Insurance Certificate Form (copy attached) or equivalent prior to closing. The receipt of any certificate does not constitute agreement by the City that the insurance requirements in the Agreement have been fully met or that the insurance policies indicated on the certificate are in compliance with all Agreement requirements_ The failure of the City to obtain certificates or other insurance evidence from Developer is not a waiver by the City of any requirements for the Developer to obtain and maintain the specified coverages. The Developer shall advise all insurers of the Agreement provisions regarding insurance. Non-conforming insurance does not relieve Developer of the obligation to provide insurance as specified herein. Nonfulfillment of the insurance conditions may constitute a violation of the Agreement, and the City retains the right to stop work and/or terminate agreement until proper evidence of insurance is provided.

The insurance must provide for 60 days prior written notice to be given to the City in the event coverage is substantially changed, canceled, or non-renewed.

Any deductibles or self insured retentions on referenced insurance coverages must be borne by Developer and Contractors.

The Developer hereby waives and agrees to require their insurers to waive their rights of subrogation against the City of Chicago, its employees, elected officials, agents, or representatives.

The coverages and limits furnished by Developer in no way limit the Developer's liabilities and responsibilities specified within the Agreement or by law.

Any insurance or self insurance programs maintained by the City of Chicago do not contribute with insurance provided by the Developer under the Agreement.

The required insurance to be carried is not limited by any limitations expressed in the indemnification language in this Agreement or any limitation placed on the indemnity in this Agreement given as a matter of law.

If Developer is a joint venture or limited liability company, the insurance policies must name the joint venture or limited liability company as a named insured.

The Developer must require Contractor and subcontractors to provide the insurance required herein, or Developer may provide the coverages for Contractor and subcontractors. All Contractors and subcontractors are subject to the same insurance requirements of Developer unless otherwise specified in this Agreement.

If Developer, any Contractor or subcontractor desires additional coverages, the party desiring the additional coverages is responsible for the acquisition and cost.

The City of Chicago Risk Management Department maintains the right to modify, delete, alter or change these requirements.

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SECTION 13. INDEMNIFICATION

13.01 General Indemnity. Developer agrees to indemnify, pay, defend and hold the City, and its elected and appointed officials, employees, agents and affiliates (individually an Alndemnitee," and collectively the Alndemnitees") harmless from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (and including without limitation, the reasonable fees and disbursements of counsel for such lndemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not such lndemnitees shall be designated a party thereto), that may be imposed on, suffered, incurred by or asserted against the lndemnitees in any manner relating or arising out of:

(i) the Developer's failure to comply with any of the terms, covenants and conditions contained within this Agreement; or

(ii) the Developer's or any contractor's failure to pay General Contractors, subcontractors or materialmen in connection with the TIF-Funded Improvements or any other Project improvement; or

(iii) the existence of any material misrepresentation or omission in this Agreement, any offering memorandum or information statement or the Redevelopment Plan or any other document related to this Agreement that is the result of information supplied or omitted by the Developer or any Affiliate Developer or any agents, employees, contractors or persons acting under the control or at the request of the Developer or any Affiliate of Developer; or

(iv) the Developer's failure to cure any misrepresentation in this Agreement or any other agreement relating hereto;

provided, however, that Developer shall have no obligation to an Indemnitee arising from the wanton or willful misconduct of that Indemnitee. To the extent that the preceding sentence may be unenforceable because it is violative of any law or public policy, Developer shall contribute the maximum portion that it is permitted to pay and satisfy under the applicable law, to the payment and satisfaction of all indemnified liabilities incurred by the lndemnitees or any of them. The provisions of the undertakings and indemnification set out in this Section 13.01 shall survive the termination of thi~ Agreement.

SECTION 14. MAINTAINING RECORDS/RIGHT TO INSPECT

14.01 Books and Records. The Developer shall keep and maintain separate, complete, accurate and detailed books and records necessary to reflect and fully disclose the total actual cost of the Project and the disposition of all funds from whatever source allocated thereto, and to monitor the Project. All such books, records and other documents, including but not limited to the Developer's loan statements, if any, General Contractors' and contractors' sworn statements, general contracts, subcontracts, purchase orders, waivers of lien, paid receipts and invoices, shall be available at the Developer's offices for inspection, copying, audit and examination by an authorized representative of the City, at the Developer's expense. The Developer shall incorporate this right to inspect, copy, audit and examine all books and records into all contracts entered into by the Developer with respect to the Project.

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14.02 Inspection Rights. Upon three (3) business days' notice, any authorized representative of the City has access to all portions of the Project and the Property during normal business hours for the Term of the Agreement.

SECTION 15. DEFAULT AND REMEDIES

15.01 Events of Default. The occurrence of any one or more of the following events, subject to the provisions of Section 15.03, shall constitute an AEvent of Default" by the Developer hereunder:

(a) the failure of the Developer to perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of the Developer under this Agreement or any related agreement;

(b) the failure of the Developer to perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of the Developer under any other agreement with any person or entity if such failure may have a material adverse effect on the Developer's business, property, assets, operations or condition, financial or otherwise;

(c) the making or furnishing by the Developer to the City of any representation, warranty, certificate, schedule, report or other communication within or in connection with this Agreement or any related agreement which is untrue or misleading in any material respect;

(d) except as otherwise permitted hereunder, the creation (whether voluntary or involuntary) of, or any attempt to create, any lien or other encumbrance upon the Property, including any fixtures now or hereafter attached thereto, other than the Permitted Liens, or the making or any attempt to make any levy, seizure or attachment thereof;

(e) the commencement of any proceedings in bankruptcy by or against the Developer or for the liquidation or reorganization of the Developer, or alleging that the Developer is insolvent or unable to pay its debts as they mature, or for the readjustment or arrangement of the Developer's debts, whether under the United States Bankruptcy Code or under any other state or federal law, now or hereafter existing for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceedings involving the Developer; provided, however, that if such commencement of proceedings is involuntary, such action shall not constitute an Event of Default unless such proceedings are not dismi~sed within sixty (60) days after the commencement of such proceedings;

(f) the appointment of a receiver or trustee for the Developer, for any substantial part of the Developer's assets or the institution of any proceedings for the dissolution, or the full or partial liquidation, or the merger or consolidation, of the Developer; provided, however, that if such appointment or commencement of proceedings is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceedings are not dismissed within sixty (60) days after the commencement thereof;

(g) the entry of any judgment or order against the Developer which remains unsatisfied or undischarged and in effect for sixty (60) days after such entry without a stay of enforcement or execution;

(h) the occurrence of an event of default under the Lender Financing, which default is not cured within any applicable cure period;

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(i) the dissolution of the Developer or the death of any natural person who owns a material interest in the Developer;

(j) the institution in any court of a criminal proceeding (other than a misdemeanor) against the Developer or any natural person who owns a material interest in the Developer, which is not dismissed within thirty (30) days, or the indictment of the Developer or any natural person who owns a material interest in the Developer, for any crime (other than a misdemeanor); or

(k) prior to the payment of all City Funds hereunder, the sale or transfer of a majority of the ownership interests of the Developer without the prior written consent of the City.

For purposes of Sections 15.01 (i) and 15.01 (j) hereof, a person with a material interest in the Developer shall be one owning in excess often (10%) of the Developer's membership interests.

15.02 Remedies. Upon the occurrence of an Event of Default, the City may terminate this Agreement and any other agreements to which the City and the Developer are or shall be parties, suspend disbursement of City Funds, place a lien on the Project in the amount of City Funds paid, and/or seek reimbursement of any City Funds paid. The City may, in any court of competent jurisdiction by any action or proceeding at law or in equity, pursue and secure any available remedy, including but not limited to damages, injunctive relief or the specific performance of the agreements contained herein.

15.03 Curative Period. In the event the Developer shall fail to perform a monetary covenant which the Developer is required to perform under this Agreement, notwithstanding any other provision of this Agreement to the contrary, an Event of Default shall not be deemed to have occurred unless the Developer has failed to perform such monetary covenant within ten (1 0) days of its receipt of a written notice from the City specifying that it has failed to perform such monetary covenant. In the event the Developer shall fail to perform a non-monetary covenant which the Developer is required to perform under this Agreement, notwithstanding any other provision of this Agreement to the contrary, an Event of Default shall not be deemed to have occurred unless the Developer has failed to cure such default within thirty (30) days of its receipt of a written notice from the City specifying the nature ofthe default; provided, however, with respect to those non-monetary defaults which are not capable of being cured within such thirty (30) day period, the Developer shall not be deemed to have committed an Event of Default under this Agreement if it has commenced to cure the alleged default within such thirty (30) day period and thereafter diligently and continuously

· prosecutes the cure of such default until the same has been cured. Any cure tendered by the limited partner of the Owner shall be treated as a cure tendered by the Owner and shall be accepted or rejected on the same terms as if such cure had been tendered by the Owner.

36

I I ~----------------·----;~~~~~~~;~~R;G~GI~~-~~-~~E P;;;~~-------·------------

All mortgages or deeds of trust in place as of the date hereof with respect to the Property or any portion thereof are listed on Exhibit G hereto (including but not limited to mortgages made prior to or on the date hereof in connection with Lender Financing) and are referred to herein as the AExisting Mortgages." Any mortgage or deed of trust that the Developer may hereafter elect to execute and record or permit to be recorded against the Property or any portion thereof is referred to herein as a ANew Mortgage." Any New Mortgage that the Developer may hereafter elect to execute and record or permit to be recorded against the Property or any portion thereof with the prior written consent of the City is referred to herein as a APermitted Mortgage." Any mortgagee in connection with the Citi Construction Loan shall be referred to herein as the "Citi Mortgagee". It is hereby agreed by and between the City and the Developer as follows:

(a) In the event that a mortgagee or any other party shall succeed to the Developer's interest in the Property or any portion thereof pursuant to the exercise of remedies under a New Mortgage (other than a Permitted Mortgage), whether by foreclosure or deed in lieu of foreclosure, and in conjunction therewith accepts an assignment of the Developer's interest hereunder in accordance with Section 18.15 hereof, the City may, but shall not be obligated to, attorn to and recognize such party as the successor in interest to the Developer for all purposes under this Agreement and, unless so recognized by the City as the successor in interest, such party shall be entitled to no rights or benefits under this Agreement, but such party shall be bound by those provisions of this Agreement that are covenants expressly running with the land.

(b) In the event that any mortgagee shall succeed to the Developer's interest in the Property or any portion thereof pursuant to the exercise of remedies under an Existing Mortgage or a Permitted Mortgage, whether by foreclosure or deed in lieu of foreclosure, and in conjunction therewith accepts an assignment of the Developer's interest hereunder in accordance with Section 18.15 hereof, the City hereby agrees to attorn to and recognize such party as the successor in interest to the Developer for all purposes under this Agreement so long as such party accepts all of the obligations and liabilities of Athe Developer" hereunder; provided, however, that, notwithstanding any other provision of this Agreement to the contrary, it is understood and agreed that if such party accepts an assignment of the Developer's interest under this Agreement, such party has no liability under this Agreement for any Event of Default of the Developer which accrued prior to the time such party succeeded to the interest of the Developer under this Agreement, in which case the Developer shall be solely responsible. However, if such mortgagee under a Permitted Mortgage or an Existing Mortgage does not expressly accept an assignment of the Developer's interest hereunder, such party shall be entitled to no rights and benefits under this Agreement, and such party shall be bound only by those provisions of this Agreement, if any, which are covenants expressly running with the land.

(c) Prior to the issuance by the City to the Developer of a Certificate pursuant to Section Z hereof, no New Mortgage shall be executed with respect to the Property or any portion thereof without the prior written consent of the Commissioner of DHED.

(d) If an Event of Default occurs under this Agreement, then any mortgagee under an Existing Mortgage or a Permitted Mortgage shall have the same right, but not the obligation, as the Developer has under this Agreement to cure such default, subject to the applicable cure periods described in Section 15.02 and Section 15.03, and the City shall accept such performance by such mortgagee for the account of the Developer and with the same force and effect as if performed by · the Developer. If the Citi Mortgagee elects to cure a default, the Citi Mortgagee may, at its option,

37

--------------------------

within a period consisting of Developer's applicable cure period for such default, plus 30 days, attempt to cure such default.

SECTION 17. NOTICE

Unless otherwise specified, any notice, demand or request required hereunder shall be given in writing at the addresses set forth below, by any of the following means: (a) personal service; (b) telecopy or facsimile; (c) overnight courier, or (d) registered or certified mail, return receipt requested.

If to the City:

With Copies To:

If to the Developer:

With Copies To:

And to:

City of Chicago Department of Housing and Economic Development 121 North LaSalle Street, Room 1000 Chicago, Illinois 60602 Attention: Commissioner

City of Chicago Department of Law 121 North LaSalle Street, Room 600 Chicago, Illinois 60602 Attention: Finance and Economic Development Division

Lake Street Studios Limited Partnership c/o Lake Street Studios LLC 219 West Chicago Avenue, Suite 400 Chicago, Illinois 60654 Attention: Ms. Gladys Jordan

The Interfaith Housing Development Corporation of Chicago 219 West Chicago Avenue, Suite 400 Chicago, Illinois 60654 Attention: Ms. Gladys Jordan

Applegate & Thorne-Thomsen 626 West Jackson Boulevard, Suite 400 Chicago, Illinois 60661 Attention: Warren Wenzloff

Enterprise Community Asset Management, Inc. 11000 Broken Land Parkway, Suite 700 Columbia, Maryland 21044 Attention: General Counsel

Such addresses may be changed by notice to the other parties given in the same manner provided above. Any notice, demand, or request sent pursuant to either clause (a) or (b) hereof shall be deemed received upon such personal service or upon dispatch. Any notice, demand or request sent pursuant to clause (c) shall be deemed received on the day immediately following deposit with the overnight courier and any notices, demands or requests sent pursuant to subsection (d) shall be deemed received two (2) business days following deposit in the mail.

38

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-------·---------------------·---------- -------·-··-·------------------SECTION 18. MISCELLANEOUS

18.01 Amendment. This Agreement and the Exhibits attached hereto may not be amended or modified without the prior written consent of the parties hereto; provided, however, that the City, in its sole discretion, may amend, modify or supplement Exhibit D hereto without the consent of any party hereto. It is agreed that no material amendment or change to this Agreement shall be made or be effective unless ratified or authorized by an ordinance duly adopted by the City Council. The term Amaterial" for the purpose of this Section 18.01 shall be defined as any deviation from the terms of the Agreement which operates to cancel or otherwise reduce any developmental, construction or job-creating obligations of Developer (including those set forth in Sections 1 0.02 and 10.03 hereof) by more than five percent (5%) or materially changes the Project site or character of the Project or any activities undertaken by Developer affecting the Project site, the Project, or both, or increases any time agreed for performance by the Developer by more than ninety (90) days.

18.02 Entire Agreement. This Agreement (including each Exhibit attached hereto, which is hereby incorporated herein by reference) constitutes the entire Agreement between the parties hereto and it supersedes all prior agreements, negotiations and discussions between the parties relative to the subject matter hereof.

18.03 Limitation of Liability. No member, official or employee of the City shall be personally liable to the Developer or any successor in interest in the event of any default or breach by the City or for any amount which may become due to the Developer from the City or any successor in interest or on any obligation under the terms of this Agreement.

18.04 Further Assurances. The Developer agrees to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications as may become necessary or appropriate to carry out the terms, provisions and intent of this Agreement.

18.05 Waiver. Waiver by the City or the Developer with respect to any breach of this Agreement shall not be considered or treated as a waiver of the rights of the respective party with respect to any other default or with respect to any particular default, except to the extent specifically waived by the City or the Developer in writing. No delay or omission on the part of a party in exercising any right shall operate as a waiver ?f such right or any other right unless pursuant to the specific terms hereof. A waiver by a party of a provision of this Agreement shall not prejudice or constitute a waiver of such party's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by a party, nor any course of dealing between the parties hereto, shall constitute a waiver of any such parties' rights or of any obligations of any other party hereto as to any future transactions.

18.06 Remedies Cumulative. The remedies of a party hereunder are cumulative and the exercise of any one or more of the remedies provided for herein shall not be construed as a waiver of any other remedies of such party unless specifically so provided herein.

18.07 Disclaimer. Nothing contained in this Agreement nor any act of the City shall be deemed or construed by any of the parties, or by any third person, to create or imply any relationship of third-party beneficiary, principal or agent, limited or general partnership or joint venture, or to create or imply any association or relationship involving the City.

18.08 · Headings. The paragraph and section headings contained herein are for convenience only and are not intended to limit, vary, define or expand the content thereof.

39

------ ·---·· -- -- -· - ·-. -- -- - -- -- - - - - ··-------

18.09 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement.

18.1 0 Severability. If any provision in this Agreement, or any paragraph, sentence, clause, phrase, word or the application thereof, in any circumstance, is held invalid, this Agreement shall be construed as if such invalid part were never included herein and the remainder of this Agreement shall be and remain valid and enforceable to the fullest extent permitted by law.

18.11 Conflict. In the event of a conflict between any provisions of this Agreement and the provisions of the TIF Ordinances and/or the Bond Ordinance, if any, such ordinance(s) shall prevail and control.

18.12 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Illinois, without regard to its conflicts of law principles.

18.13 Form of Documents. All documents required by this Agreement to be submitted, delivered or furnished to the City shall be in form and content satisfactory to the City.

18.14 Approval. Wherever this Agreement provides for the approval or consent of the City, DHED or the Commissioner, or any matter is to be to the City's, DHED's or the Commissioner's satisfaction, unless specifically stated to the contrary, such approval, consent or satisfaction shall be made, given or determined by the City, DHED or the Commissioner in writing and in the reasonable discretion thereof. The Commissioner or other person designated by the Mayor of the City shall act for the City or DHED in making all approvals, consents and determinations of satisfaction, granting the Certificate or otherwise administering this Agreement for the City.

18.15 Assignment. The Developer may not sell, assign or otherwise transfer its interest in this Agreement in whole or in part without the written consent of the City. Any successor in interest to the Developer under this Agreement shall certify in writing to the City its agreement to abide by all remaining executory terms of this Agreement, including but not limited to Sections 8.19 (Real Estate Provisions) and 8.20 (Survival of Covenants) hereof, for the Term of the Agreement. The Developer consents to the City's sale, transfer, assignment or other disposal of this Agreement at any time in whole or in part.

18.16 Binding Effect. This Agreement shall be binding upon the Developer, the City and their respective successors and permitted assigns (as provided herein) and shall inure to the benefit of the Developer, the City and their respective successors and permitted assigns (as provided herein). Except as otherwise provided herein, this Agreement shall not run to the benefit of, or be enforceable by, any person or entity other than a party to this Agreement and its successors and permitted assigns. This Agreement should not be deemed to confer upon third parties any remedy, claim, right of reimbursement or other right.

18.17 Force Majeure. Neither the City nor the Developer nor any successor in interest to either of them shall be considered in breach of or in default of its obligations under this Agreement in the event of any delay caused by damage or destruction by fire or other casualty, strike, shortage of material, unusually adverse weather conditions such as, by way of illustration and not limitation, severe rain storms or below freezing temperatures of abnormal degree or for an abnormal duration, tornadoes or cyclones, and other events or conditions beyond the reasonable control of the party affected which in fact interferes with the ability of such party to discharge its obligations hereunder. The individual or entity relying on this section with respect to any such delay shall, upon the occurrence of the event causing such delay, immediately give written notice to the other parties to

40

~ i . ~--------------- ------------------------------------------

' this Agreement. The individual or entity relying on this section with respect to any such delay may rely on this section only to the extent of the actual number of days of delay effected by any such events described above.

-18.18 Exhibits. All of the exhibits attached hereto are incorporated herein by reference.

18.19 Business Economic Support Act. Pursuant to the Business Economic Support Act (30 ILCS 760/1 et seq.), if the Developer is required to provide notice under the WARN Act, the Developer shall, in addition to the notice required under the WARN Act, provide at the same time a copy of the WARN Act notice to the Governor of the State, the Speaker and Minority Leader of the House of Representatives of the State, the President and minority Leader of the Senate of State, and the Mayor of each municipality where the Developer has locations in the State. Failure by the Developer to provide such notice as described above may result in the termination of all or a part of the payment or reimbursement obligations of the City set forth herein.

18.20 Venue and Consent to Jurisdiction. If there is a lawsuit under this Agreement, each party may hereto agrees to submit to the jurisdiction of the courts of Cook County, the State of Illinois and the United States District Court for the Northern District of Illinois.

18.21 Costs and Expenses. In addition to and not in limitation of the other provisions ofthis Agreement, Developer agrees to pay upon demand the City's out-of-pocket expenses, including attorney's fees, incurred in connection with the enforcement of the provisions of this Agreement. This includes, subject to any limits under applicable law, attorney's fees and legal expenses, whether or not there is a lawsuit, including attorney's fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post­judgment collection services. Developer also will pay any court costs, in addition to all other sums provided by law.

18.22 Business Relationships. The Developer acknowledges (A) receipt of a copy of Section 2-156-030 (b) of the Municipal Code of Chicago, (B) that Developer has read such provision and understands that pursuant to such Section 2-156-030 (b), it is illegal for any elected official of the City, or any person acting at the direction of such official, to contact, either orally or in writing, any other City official or employee with respect to any matter involving any person with whom the elected City official or employee has a ABusiness Relationship" (as defined in Section 2-156-080 of the Municipal Code of Chicago), or to participate in any discussion in any City Council committee hearing or in any City Council meeting or to vote on any matter involving any person with whom the elected City official or employee has a ABusiness Relationship" (as defined in Section 2-156-080 of the Municipal Code of Chicago), or to participate in any discussion in any City Council committee hearing or in any City Council meeting or to vote on any matter involving the person with whom an elected official has a Business Relationship, and (C) that a violation of Section 2-156-030 (b) by an elected official, or any person acting at the direction of such official, with respect to any transaction contemplated by this Agreement shall be grounds for termination of this Agreement and the transactions contemplated hereby. The Developer hereby represents and warrants that, to the best of its knowledge after due inquiry, no violation of Section 2-156-030 (b) has occurred with respect to this Agreement or the transactions contemplated hereby.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

41

I .,

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I

.. ------- ·- ---- -- ·----- ---~--·--······ -------- ----- --------------- ----·- ------------ -------------------

IN WITNESS WHEREOF, the parties hereto have caused this RedevelopmentAgreementto be executed on or as of the day and year first above written.

LAKE STREET STUDIOS LIMITED PARTNERSHIP, an Illinois limited partnership

By: LAKE STREET STUDIOS LLC, its general partner

By: THE INTERFAITH HOUSING DEVELOPMENT CORPORATION OF CHICAGO, an Illinois not-for­profit corporation, its manager

By~ ii

Its: fv(/!S!den T

INTERFAITH HOUSING DEVELOPMENT CORPORATION, an Illinois not-for-profit corporation

By~ Its: r+~scde{!)f

CITY OF CHICAGO, by and through its Department of Housing and Economic Development

By: ______ :-----:-----­Andrew J. Mooney, Commissioner

42

: I

I i I

I I i I

IN WITNESS WHEREOF, the parties hereto have caused this Redevelopment Agreement to be executed on or as of the day and year first above written.

LAKE STREET STUDIOS LIMITED PARTNERSHIP, an Illinois limited partnership

By: LAKE STREET STUDIOS LLC, its general partner

By: THE INTERFAITH HOUSING DEVELOPMENT CORPORATION OF CHICAGO, an Illinois not-for­profit corporation, its manager

By: _____________ _

Its: ____________ _

INTERFAITH HOUSING DEVELOPMENT CORPORATION, an Illinois not-for-profit corporation

By: _____________ _

Its: ---------------

CITY OF CHICAGO, by and through its Department of Housing and Economic Development

STATE OF ILLINOIS ) ) ss

COUNTY OF COOK )

I,~ 0\66 G. CoteC.b!Zr:lv rl a notary public in and for the said County, in the State aforesaid, ~0 HEREBY CERTIFY that Gtt:?dy5 Jotrc/aiJ , personally known to me to be the

reGrdfA)lf- of Lake Street Studios Limited P<::~rtnership, an Illinois limited partnership (the AOwner"), and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed, sealed, and delivered said instrument, pursuant to the authority given to him/her by the General Partner of the Owner, as his/her free and voluntary act and as the free and voluntary act of the Owner, for the uses and purposes therein set forth.

GIVEN under my hand and offi~(''dayo~ch;./;er lj, ~ C/)1 (ln

_ .. OFFICIAL SEAL (St::BENlsE G CORCORAN NOTARY PUBLIC· STATE OF ILLINOIS

MY COMMISSION EXPIRES:OB/20/15

Notary Public

My Commission Expires~

43

~0/3 , __ .

STATE OF ILLINOIS ) ) ss

COUNTY OF COOK )

1,t::£0'1.s~ &. C7>tC&en,.J , a notary public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that GYa dy.s CJO,rdOV"l , personally known to me to be the

Pr-e;, 1 d enf of Interfaith Housing Development Corporation, an Illinois not-for-profit corporation (AIHDC"), and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed, sealed, and delivered said instrument, pursuant to the authority given to him/her by the [trustees] of IHDC, as his/her free and voluntary act and as the free and voluntary act of · IHDC, for the uses and purposes therein set forth.

GIVEN under my hand and ofti~tday of (J:)e-fll izeq

. ~ )j, Ctn (lffi (Vn

OFFICIAL SEAL (~!.SF G CORCORAN

NOTARY PUBLIC· STATE OF ILLINOIS MY COMMISSION EXPIRES:OS/20/15

Notary Public

My Commission Expires~

44

,!)d/3.

STATE OF ILLINOIS ) ) ss

COUNTY OF COOK )

I, @±r:ictrv Sulewsk.t" I a notary public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Andrew J. Mooney, personally known to me to be the Commissioner of the Department of Housing and Economic Development of the City of Chicago (the "City''), and personally known to me to be. the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed, sealed, and delivered said instrument pursuant to the authority given to him/her by the City, as his/her free and voluntary act and as the free and voluntary act of the City, for the uses and purposes therein set forth.

GIVEN under my hand and official seal this jg_th day of No\tl--r~t( , 1D\~.

OFFICL'.LSEAL ~) ~~ PATRICIA SULEWSKI Notary Public

NOTARY PUBLIC- STATE OF ILLINOIS MY COMMISSION EXPIRES:05107114

My Commission Expires

i I ! .

EXHIBIT A

REDEVELOPMENT AREA See attached.

L

46

3874 JOURNAL-CITY COUNCIL--CHICAGO 7/28/201.1

e:x;tent on the cooperation bet~en the ·private sector and age_ilcies of local government.

Succ~ful implementation of the Near West Redevelopme;n.t Plan and Project requires tha:t .the City of Chicago take full advantage of the real estate tax. increments attributed to the Near West-Redevelopment Proje.ct Area as provided in accordance with the Act.

Redevelopment Project Area And Legal D~scriptfon.

The Near West Redevelopment Project Area is loca~d on the ne~ west side of the City .of Chicago, Illinois directly west of the City's Cen~x:al Business District. The Near West Redevelopment Project Are~ contains· approxim.ately one hundred two (102) acres. The boundaries o( the Near West Redevelopmep.t Project Area are shown on Map .1 (BO.~dary,_Map); the current land uses· are shown ·on Map 2 (Existing ·Land Uses). The Near West Redevelopment Project Area includes only those conti,guous parcels of real property that are. expected to be substantially benefited by the· Near We:st Redevelopment Plan and Project.

The ~egal desc:d.ption of the Near West Redevelopment Project Area includes the legal description of the Original Rede-velopment Pr.ojed. Area combined with the l.~gal description of the Added Ax:ea;and is as follows:

Legal Description OfThe Original ·'·-~-- Redevelopment Project A-rea.

begilming at the southeast corn.er of West Madison .Street and South Green Street; thence so:utherly to the south.east cor.ner of South Green Street and-West Monroe Street; thence westerly to the .southwest corner of South Sangamon Str~et and West Monroe Street;· thence northerly to the southwest corner of W~t Madison Street an!i South. Sangamon Street; the.Iice westerly to the southeastern" C0]1ler of West Madiso.n. Street and S~~th .Morgan_ Street; the~ce southe:i:ly tO the sputh~ast corne,r of"South Morgan Street ~d West ::M;o~oe Sf;reet; the~ce wesWx-ly to the southwest corner of South Aberdeen Street ~d. West Monroe Street; thence northerly to the southwest corner ofWest.Madison Street and South Aberdeen Street; thence westerly to a ·point in the· west line, . produced south of North May Street; thence northerly to _the northwest corner of West Randolph Street and North May Street; thence easterly to the northeast corner of West Randolph Street and North Carpenter Street; thence southerly to the northeast corner of :North Carpenter· Street and West Washington Boulevard; thence easterly to the northeast corner of North Peoria Street and West Washington Boulevard; thence southerly to the northeas~ corner of West Madison ·

7/28/2011 REPORTS OF COMMITTEES 3875

Street and North Peoria Street; thence easterly to the northeast corner ofWest Madison Street and North Green Street; thence southerly to the point of beginning.

This-area includes:

Block 17-08--448 of which a part is a part ofS. F. Gale's Subdivision of Block 52 of Carpenter's Addition to Chicago (recorded February 29, 1872, Document Number 15649)-(which said Carpenter's Addition is a subdivision ofthe southeast quarter of Section 8-39-14 (recorded August 31, 1836)); and of which a part is also a part ofWilliam Hale Thompson's Subdivision of Lots 17 to 26, inclusive, in S. F. Gale's Subdivision of Block 52 of Carpenter's Addition to Chicago (recorded July 21, 1890, Document Number 1306568) (which said Carpenter's Addition is a subdivision of the southeast quarter of Section 8--39-14 (recorded August 31, 1836)).

Also :

Block 17-08-447 of which a part is a part of Block 51 of Carpenter's Addition to Chicago, a subdivision of the southeast qt1arter of Section 8-39-14 (recorded August 31, 1836 (Ante-Fire)); and of which a part is also a part of Assessor's Second Division of the east half ofLot 3 all of Lots 1, 2, 7, 8, 11, 12,

' 15, 16, 17 and 18 of Block 51 of Carpenter's Addition to Chicago (recorded November 29, 187~, Document N1unber 71687, re-recorded October 1, 1875, Document Number 51466); and of which a part is also a part· of B. C. Van Schaak~:;; Subdivision of Lot 7 (except the north 20 feet} and Lot 8 (except the south 20.feet) in Block 51 of Carpenter's Addition to Chicago (recorded October 27, 1885 as Document Number 664546).

Also

Block_l7 -08-446 of which a part is a part of Block 50 of CaiJ!enter's Addition to Chicago, a subdivision of the southeast quarter of Section 8-39-:-14 (recorded August ·31~ 1836 (Ante-Fire)); and of which a part is a part of Assessor's Division of Lots 1 to 9 in Block 50 of Carpenter's Addition to Chicago (recorded July 30, 1859 (Ante-Fire)).

Also

Block 17-08-437 of which is part of Block 42 of Carpenter's Addition to Chicago, a subdivision of the southeast quarter of Section 8-39-14 (recorded August 31, 1836 (Ante-Fire)).

3876 joURNAL-CITY COUNCIL-QHiQAGQ 7/28/2011

Also

B~ock IT-~.436 whic;h is part ofWilliamJ. Bunk.~s"Subdivision of Block 43 of Carpen,te,r's-Addition to·Chieago (recorded Ju~y I. 1848 {Ailte-Fire))

. (which said Carpenter's Addition is a s1,1bdivision qf·the southeast qu~er of Section 8-39-14;recorded August31, 1836 (~te-Fire)) ..

Also

Block.l7...()8-0-i4 o.fwhichis·a part ofresubdivision ofBioclt 48 of Carpenter's Addition::~ C~«:~~o (~ecorded_F~~ru.ary·17, 1857 {Ante-Fire)) (whic~ said Carpenter's Ad~tion Is a subdi_VlSion of the southe~t quarter of Section 8-39-14 (r.eC9rded.A.ugust 31, 1836).; and which ·part is·a part of C.W. Coo~'s. Subdivision of Lots. 1 to 5 of Block 48 of Carpenter's Addition to Chicago (Ante-Fire) (which said Carpenter's Addition i:s a subdivision of the southeast quarter of Section 8-39-14 (recorded August.?!, 1836)).

Also

Blo.ck 17 -OB-445 ofwhich part ..is a part of BlOCk 49 of Carpenter's Addition to Chicago, a subdivision·.ofthe southeast quarter of Section 8:..39-14 (recorded August.31,183S,(Ante..-Fire)); and of which.part.is a. part:of.the subdivision-of the west 100 feet of Lot 6 -of-Block 49 of Carpenter's Addition to Chicago (recorded Septeniber·13, 1875 as Document N~ber 48790) .

.......... __

Also

Block 17.:17-208 of which is Block 2 of Duncan~s Addition to Chicago, a sup division of the eas1; half of the northeast quarter of Section 17-39-14 (Ante-Fire)~ . .

Also

Block 17-17-297 which is a part of Block 3 ofDuJican's Ad,dition to Chicago, a subdiVision of the east half of the northeast quarter of Section 17-39-14 (Ante-Fi~);_~d of which a part is subdivision of Lots 15 and 1.6,Block 3 of Duncan's Addition to Chicago (Ante-Fire). .

7/28/2011 REPORTs- OF CQMMJTIEES 3871

.Bio·ck 17-17:.20~ y.r!llch.is a part of the Sl,ibdivi.sion of_~lf!ck _1 o.f qanal Trus~e's Subdivision and of Block. 5 of D\:plcarrs Addition to Ch1cago (reco.rd~d .August 13, 1853 (Ante-Fire)O .(which said Canal Trustee's Subdivision is a subdivision of the west half and the wes.t. half of the northeast quarter of Section 17-39-14. (recordei;l Aqgu_st 31, .1848_ (Ante-:­Fire))~and which said Duncan's Addif;ion is a-subdivision oftb.e east half of the northeast quarter of Section 17-~9-14- (recorded 1\pril 29, 1836 (Ante­Fire)).

Also

Block 17-17-204 of which a part is a part of the subdivision of Block 1 of Canal Trustee's Subdivision, and of Block 5 of"Duncan's Addition to Chicago .(recorded August 13, 1853 (Ante-Fire)) (which said Canal Trustee's Subdivision is a subdivision of the west half and the west half of the northeast quarter of Section 17-39-14, and which said Duncan's Addition is a subdivision of the east half of the northeast quarter of ~ecti~n 17 -39-14); and of which a part is also a .p~ of subdivision of_ the xntenor part of Block 1 of Canal Trustee's SubdiVISJ.on (recorded Apnl8, 1857 (Ante-Fire)) and of which a part is also a part of Holden's Plat of ~teof.s~~~~i~~~~*i!t~~o~ ~d p~ of ~l.o~k 1 of Canal

..... _ Also

Block 17-17-205 ofwhich apart is a part.ofthe subdivision ofBlock 1 of Canal Trustee's Subdivision and of Block 5 of Duncan's Addition· to Chicago (recorded August 13, 1853 (Ante-Fire)). ·(which said Canal Trustee's Subdivision is a submvision of the west half and the west half ofthe northeast quarter of Section 17-39-14 (recorded August 31, 1848 {Ante-Fire)), and which said Duncan"?s -Addition is a subdivision of the east hhlf of"the northeast quarter ofSectiQn 17-39-14 (recorded April29, 1~36. (Ante-Fire)), and of which a part is a part of C.C.P. Holden's Resuhdivision of Lots 33, 34, and- 35 of Block 1 of Canal Trustee's Subdivision {Ante-Fire).

Added Area Legal Description.

That part of the southeast quarter of Section 8 and part of the southwest quarter of Sect:ion 9 and part of the northwest quarter of Section 16 and part

3878 JOURNAL-C11Y COUNCIL-CHICAGO 7/28/2011

of the northeast quarter ofSection 17, Township 39 North, Range 14 E"astof the Third Principal Meridian, described as follows: beginning at the in~rsection of the north right-of-way line ofWest Lake Street, with the west right-of-way line ofN orth Peoria Street; thence south, along said west right­of-way line of North Peoria Street, tQ the north right-of-way line of We8t Washington Street; thence east, along said north-right-Qf-way line of West Washington Street, to the east right-of-way line of North Peoria Street; thence south, along said east.right-of-way line-of North Peoria Street, to the south right-of-way line ofWestWashington_Street; thence east, along said south right-of-way line ofWest Washington Street, to the west right-of-way line of North Green Street; thence sou:th, along said west right-of-way· line of · North Green Street, to·the north right-of-way line ofWest Madison Street;· thence eaSt, alo:p.g said north right-of-way line ofWest Madiscm Street, to. the ea~t right-of-way line of North Green Street; thence south, along said ~ast right-of:.. way of"North Green Street and the east right-of-way line of South Green Street, to the south right-of-way line of West Monroe. Street; thence west, along said south right-of-way line. of West Monroe Street, to the east right-of-way line of South Peoria Street; thence south,. along said east right­of-way line of Sou"th Peoria Street, to the north right-of-way line of West Ad~ Street; thence east, along said north-right-of-way line. of West Adams Street, to the southeast corner of Lot 9 in Block 9 in Duncan's Addition to Chicago, a subdiviSion of the east half of the northeast quru:ter of said Section 17, also being a point in the centerline of said Blp~ ~;thence south, along th.e centerline of Block 12 in said Duncan's Addi tipn to Chicago and its northerly and southerly extensions to th·e south right-of--way line. of West Jackson Bo"ulevatd.;· thence e"ast, a:long said south right~of-v~ay-line of West Jackson Boulevard, to the west right-of-way line of South Greeii Street; thence south, along said west right-of-way line of South Green Street, to the norther.ly right-of-way line of the Dwight D. Eisenhower Expressway; the:nce eaSterly, along said northerly right-of-way line of the Dwight D. Eisenhower Expressway to a point on the south line of Lot 2 in Block 21 in said Duncan's Addition to Chic~go, said point being 17 feet east of the southwest co :mer of said Lot 2·; thence east, along the ·south line of said Lot 2 to the southeast corner· thereof, said poirit being on the west right-of_.way line of South Halsted Street; thence east to the so~thwest corner of Lot 17 in J. A. Yi!-e's Subdivision of .Block 5 of School Section Addition to Chicago of said Section 16, said point being on the east right-of-way line of South Halsted Street; thence east, along the south line of Lots 17 through ~3 inclusive, in said J. A~ Yale's Subdivision; to a point on the east h~e of the· west 5 foot line ofLot 13 in said J. A. Yale's Subdivision, thence north, along said ea5t line of the west 5 feet of Lot 13, to the south right-of-way line of West Van Buren Street, thence northerly, to a point on the northerly right­of-way line of West Van Buren Street, said point being on the west right-of- . way line of the John F. Kennedy Expressway; thence northe,rly, along said V{est right-of-way line of the John F. Kennedy Expressway, to the north right-of-way line of West Jackson Boulevard; thence east, along said north right-of-way line ofWest Jackson Boulevard, to the east line of the west 29 feet ofLot 6 in Blanchard's Subdivision of Block 3 of School Section Addition to Chicago of said Section 16; thence north, along said east line of the west 29

7i2BI2011 REPORTS QF COM.MinEES 3879

.fe.et:ofsaid Lot 6 and its north~:dyextensi9n,.to the north. right-of-way line of West Quincy Street at a point on the south line ofLot 3 in said Blanchard's. Subdivis~on; thence east .along said north right-of:way line·ofWest Quincy Street, to ·a point on the sou~ line of Lot 3, 42 feet east of the southwest corner·the:reof; thence northeasterly to a point on the north line of said Lot 3 in said Blanch.ard's Subdivision, 58 feet ~t of the northw:est corner thereof,. said point also being on the south right-of-way line of West Adam8 Street;

'thence northwest to a point on· the north right-of-way line of said. West Adams Street, said point bejng on· the south line of Lot 6 in Block 2 of School Section Addition to Chicago of said Section 16, 20 feet east of the southwest earner thereof; thence northeaskrly. to a point Qn.the north right-of-way ~ne ofWe~t Marble Place, said point being on the south.line ofLot 3 in Block 2 o.f School Section Addition, to Chicago of S?i~ Se.ction 16, 45. feet ea:.?t of the southwest comer thereof; thence west, along the south line of said Lot 3· in Block 2 to the east line of the west 15 feet of said Lot 3 in Block 2; thence north, along the east line of the west 15 feet of said Lot 3 in Block 2, to the north line of said Lot 3 in Block 2 ~d also being on the south right-of-way line ofW est Monroe Street; thence west, along said south right-of-way line of West Monroe Street, to the west right-of-way line of the John F. Kennedy Expressway; thence northerly, along said west right-of-way line of the John F. Kennedy Expressway, to the north right-of-way line of West Lake Street; thence west, along said north right-of-way line of West Lake Street, to the point of beginning, in Cook County, Illinois.

Overall Goals And Objectives.

-- . The.o;;rerall goals and objectives presented in this Near West Redevelopment Plan and Project are consistent with, and do not contradict, th~ goals and objectives presented in the Original Redevelopment Plan and Project. The Near West Redevelopment Plan and Project also confonns to the Madison-Racine Urban Renewal Designation and Redevelopment Project Report for the development of the Marlison-Racine area as a whole·. ·

General Goals:

Improve the quali1y of J,ife in· Chicago by improving the economic vitality of the "Con~ervation Area" in the Near West Redevelopment Project Area.

Provide sound economic development in the Near West Redevelopment Project Area.

Revitalize the Added Area to enhance its importance as a commercial center contributing to the improved vitality of the City.

6/5/2013 REPORTS OF COMMITIEES

Exhibit 1.

Amendment No. 4.

Map 3 --Revised Proposed Land-Use Map. (November 26, 2012)

NEAR WEST TAX

REVISED

REIJEY£1.01'/IF.KT PUI{ 1/AJ' ,

PROPOSED t UID•Us£

~--

~-==-8-~

lNCR£M'f.Nt FJNANONG

DISfRICI"

REDEYElOPM£H1' PLAN

MAP3~

PROPOSED LAND USE

tNovcmber 2.6, lOU)

53859

EXHIBIT B LEGAL DESCRIPTION

LOT 9 IN BLOCK 65 IN CANAL TRUSTEES' SUBDIVISION OF BLOCKS AND LOTS IN THE SOUTHWEST QUARTER OF SECTION 9, TOWNSHIP 39 NORTH, RANGE 14 EAST V OF THE THIRD PRINCIPAL MERIDIAN, SAID SUBDIVISION BEING ALSO KNOWN AS PART OF THE ORIGINAL TOWN OF CHICAGO, IN COOK COUNTY, ILLINOIS.

COMMONLY KNOWN AS: 727 WEST LAKE STREET, CHICAGO, ILLINOIS vi'

PERMANENT INDEX NUMBER: 17-09-318-003-0000, VOL. 590 J

Acquisition Demolition New Construction Construction Permits and Fees Architect's Fee- Design Architect's Fee - Supervision Engineering/Soil Testing Appraisal Environmental Report HERS Testing Total

EXHIBITC

TIF-FUNDED IMPROVEMENTS

$530,000 $208,495

$6,302,852 $68,200

$237,625 $72,875 $43,225

$5,400 $9,779 $8,500

$7,486,951 *

*Notwithstanding this amount, the total amount payable for TIF-Eiigible costs will not exceed $1,289,470.

48

EXHIBIT D

REDEVELOPMENT PLAN

[Intentionally Omitted]

EXHIBITE

CONSTRUCTION CONTRACT

[Intentionally Omitted]

EXHIBIT F

ESCROW AGREEMENT

[Intentionally Omitted}

EXHIBITG

PERMITTED LIENS

1. Liens or encumbrances against the Property:

Those matters set forth as Schedule B title exceptions in the owner's title insurance policy issued by the Title Company as of the date hereof, but only so long as applicable title endorsements issued in conjunction therewith on the date hereof, if any, continue to remain in full force and effect.

2. Liens or encumbrances against the Developer or the Project, other than liens against the Property, if any:

Existing Construction Mortgage, With Assignment of Rents, Security Agreement and Fixture Filing by Developer to Citibank, N.A., dated November 6 2013.

52

Acquisition

Acquisition - carrying costs

Acquisition Total:

Demolition

Net Construction Costs

General Conditions

Overhead

Profit

Bond Premium I LOC fee

Building Permits

Utility Fees

Contingency

Construction Total:

Real Estate Taxes

Hazard Insurance

Construction Period Total:

Architect- Design

Architect -- Supervision

Soil Testing

Predevelopment Interest

Legal - Organizational

Accountant -- General

Plats & Surveys

Appraisal

Environmental Reports

Market Study

Title & Recording Fees

HERS Testing

Professional Fees Total:

Marketing & Leasing

Marketing & Leasing Total:

Application Fee

LIHTC Reservation Fee

Construction Points

Lender Legal Costs

Construction Inspection

Lender Fees Total:

Developer Fee

Deferred Developer Fee

Developer Fee Total:

EXHIBIT H

PROJECT BUDGET

53

$530,000

45,367

575,367

208,495

10,999,556

995,949

244,080

366,120

100,299

36,102

780

645,725

13,597,106

40,000

49,422

89,422

479,250

145,750

86,449

25,447

109,537

25,000

6,000

10,800

19,558

8,411

27,110

17,000

960,312

25,000

25,000

10,000

113,212

97,542

45,000

22,800

288,554

1,000,000

331,000

1,331,000

Tax & Insurance Escrow

Replacement Reserve

Lease-Up Expense

Operating Deficit

Reserves Total:

Equity Bridge Loan

Total Development Cost

54

51,413

21,350

30,009

208,530

311,302

285,000

$17,463,063

EXHIBIT I

[Intentionally Omitted]

EXHIBIT J

OPINION OF DEVELOPER'S COUNSEL

[Intentionally Omitted]

EXHIBITK

REQUISITION FORM

[Intentionally Omitted]

)

EXHIBIT L

FORM OF SUBORDINATION AGREEMENT

[Intentionally Omitted]